Friday, January 22, 2016

The stock market and the stock market

The stock market and the stock market, is a market but is different from other markets, they do not display does not have in most cases the goods and commodities,

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Valeda that are traded them are not real assets, but financial or financial assets papers, and often these stocks, bonds goods. Of the market for legal and technical rules of performance and controller how to choose a certain security and timing of disposition was Buster investor or unqualified major loss exposed in the event of his purchase or sale of securities in the market because it was based on findings in the sale or purchase on false or inaccurate statements or that underestimated the data.
Given the free atmosphere of competition in the stock market (stock market), this leads, in many cases, to operations speculation severe the financial institutions and large companies could collapse, as happened on Black Monday in New York Stock Exchange, or on the black the other Monday's famous Kuwait in 1983, when losses amounted to "climate market" for securities nearly $ 22 billion. Disaster or February in the Saudi stock market, where the index lost 50% of its value as most Saudis traders lost 75% of their capital and also a disaster on Black Tuesday on 03/14/2006.
And it referred to the level of the stock market the so-called points, and the points are counted for the loss and the rise of so-called closing market price per day.
It depends traders generally two methods in stock selection, technical analysis, a method through which to check stock in accordance with the evolution of price movements and historical price and using charts to determine the timing of the disposition of the sense of when to buy a stock or sell it or keep it and fundamental analysis, which examined the financial statements and it down the real value of the shares so that helps fundamental analysis to identify stocks with price imbalance any unquoted less or higher than their real value, can not be said that technical analysis is better than fundamental analysis or vice versa, but the investor needs to analyze the primary to choose a good stock. And technical analysis is necessary to help determine the timing of the decision.
And changing the share price in the stock market as a direct result of the change in the ratio between the supply and demand for this stock or that, in the case of high demand for the purchase, the sales orders cheap price will be carried out, and begin the most expensive emerging applications and starts with the price to rise, and this is contrary to what is happening in the case demand for the sale.
Origin of the word "exchange"
Owes its origin the word "exchange" to van Der Borsn family Belgian who was working in the field of bank name, and agreed that the hotel which is owned by this family in the city of Brutes meeting place for local merchants in the fifteenth century, became over time a symbol of the capital market and Mercantile Exchange. The first publication of what looks like a list of stock prices throughout the trading period for the first time in 1592 in Anffers came.
Financial market
Financial market (Financial market), that is a market that collects and focuses supply and demand for money long-term. This is what distinguishes it from the money market (Money Market), which deal of credit for short.
The financial market is also characterized by being involved in so-called securities, whether papers governmental or papers for special projects, other than the money market, which mainly deals in so-called commercial papers, and present financial market institutions usually in countries where the banking system (banks) integrated, which include investment banks, banks and business, real estate, banks, stock exchanges and insurance companies.
Stock
Historically, the stock is trading in the stock market, tend to rise in value over time. It also has the opportunity to achieve better than other types of investment over the long term performance. Even so, the stock is vulnerable to price fluctuations greater than other financial instruments. Shops in the stock is either one of the two investor or speculator. Is the investor who buys shares after the company have access to the company's performance and to identify the services and the strength of their products, and get out on the quarterly financial statements (quarter, semi-annual) financial statements at the end of the fiscal year. The comparison of the company's performance in the different performance of the company or between the company and its annual competition periods. This method is called the primary analysis (Fundamental Analysis). Who follows this method is who wants to reap profits from the expected rising share during the several months or years, or even receive dividends from the company for him to share the company. The strategic acquisition of the stock in this way is called buy and hold (Buy and Hold) any possession arrow and survival in the investment portfolio for the period. The second class of shares is speculative traders, the analyzes of the stock using the stock performance graph. Speculator does not pay attention to the products and services the company nor to the financial statements often. All you care about is the stock movement that emerges through the graph. This type of analysis is called technical analysis (Technical Analysis). And speculators are divided sections of them speculative flip-flops (Swing Trader) and speculator daily (Day Trader).
The emergence of joint stock companies
With the expansion of the colonial powers after being seized some developing countries in Asia, Africa and Latin America needed to huge amounts of money to shrug individuals provided for the development of projects for the exploitation of the bounties of those poor countries, hence the idea of ??joint stock companies, which has too many shares and the higher the company's shares have doubled their means of recruitment more money and implementation of big business at the local and global scales. Over the years, the growing interest in the ordinary stock market significantly person. While, it was in the game as the rich, as a quick way to gain wealth. Widespread appetite for this market called the events a wide developments in trading technology on the market so that it, for the time being, anyone rapid entry into this market can and purchases of shares of any company they are.
Breadth of this phenomenon and the increase in working out had a significant impact on most countries of the world where economies based on large-scale projects of industrial and commercial, industrial and others.
The stock is fabulous category of financial instruments without a doubt among the most important innovators tools to collect wealth. The stock is a part, if not the cornerstone, of almost any investment portfolio.
How to trade in stock
Most of the shares traded on the stock market, and are the places that bring buyers and sellers and make a decision on price. Some exchanges are trading at sites where the transactions in the trading floor. And it may be that you ever saw pictures of the trading floor, where traders raise their hands, waving, screaming, and they point to each other. The other type of deal is practical, so that consists of a network of computers where trades are electronically. The principle of the stock market is to facilitate the exchange of securities between buyers and sellers, and keep the investment risk. Just imagine how hard sell shares if you had to call around to try to find a buyer. Indeed, the stock market is actually a high-development market linking buyers and sellers. New York Stock Exchange: the stock market is the most prestigious in the world (NYSE). Founded by "Big Board" for more than 200 years in 1792 with the signing of the Buttonwood Agreement by 24 broker from New York City. Currently in New York Stock Exchange, and with stocks like General Electric, McDonald's, Citigroup, Coca-Cola, Gillette and Wall Mart, the preferred market for the largest companies in America has become.
New York Stock Exchange is the first exchange trading center (as noted above), where it is a lot of trading tools and face to face in the trading floor. Requests come through brokerage firms that are members of the exchange and flow down to floor brokers who go to a specific spot of earth where the stock is trading. This site, known as the last trading center, and there is a certain someone who specializes mission is matching between buyers and sellers. Prices are determined by using the method of auction or the display: the current price is the highest amount the buyer is willing to pay and the lowest price is the one who is ready to sell it. And what are the business process, the details are sent to the brokerage firm, which in turn notifies the investor who put demand (sale or purchase). And despite the existence of human contact in this process, the computer plays an important role in this process.
NASDAQ: is the second type of exchange and is a kind of virtual and are not traded directly on the stock exchange Center (OTC), which is considered one of the most popular stocks. These markets do not have a central location or intermediaries at all. And it is traded through the computer network and telecommunications among traders. In the past, only the largest companies listed on the NYSE while all other shares are traded second-class in other exchanges. But the technology boom in the late nineties is all this, and now the NASDAQ is home to several major technology companies such as Microsoft, Cisco, Intel, Dell, and Oracle. This has led the NASDAQ to become a serious competitor to the New York Stock Exchange.
NASDAQ, brokerage firms play the role of market makers for various stocks. Market Maker offers continuously supply and demand price within the spread of the prescribed percentage of shares that have been classified to enter the market. These companies combine AA lmstraen and sellers directly but usually maintain some inventory of shares to meet investor demands.
Other exchanges: the third largest stock exchange in the United States Securities are (AM-EX). AM-EX was created to be an alternative to the New York Stock Exchange, but since then the NASDAQ occupied this role. In fact, the National Association of Securities Dealers (NASD), which is the basis of the NASDAQ, AM-EX bought in 1998. Almost all are now trading on the AM-EX is the small cap stocks and derivatives businesses. There are many stock markets in almost every place in the world. US markets is without a doubt the biggest, but they still make up only a fraction of the total investments worldwide. The other major financial centers located in London, home to the London Stock Exchange, Hong Kong, home to the Hong Kong Stock Exchange.
The advantages of stock trading
Actively traded stock resulting in better than just buy and hold for a period of retained earnings.
There are thousands of stocks listed on markets in the United States (such as the New York Stock Exchange and NASDAQ) and around the world. And there are always stocks fluctuating price - it's just a matter of finding them.
The most heavily traded stock was the biggest companies that most of us have heard about, such as Microsoft, IBM, Cisco, etc ...
How do you make your business first?
When an individual prepares to enter the initial trade, it can use the following steps:
Open the program on online trading. Log on to the trading account with the user and your password name. When the display begins, you have to look and find the arrow that intend to trade him, and that the existing market information in front of you is correct.
Open graph to display the main schemes.
Watch the market, and wait until the market fits with your position to enter into Your transaction.
After you've entered your trade, make sure the take profit and stop loss, either manually or automatically by the trading platform you are using. In most trading systems, it should also be a profit target is to reduce, and stop loss order must be ordered to stop.
Watch the stock market at the same time you have the business operations, and clung in Asthma profit or stop loss. If you notice any change in your business, which includes the profit or loss, you can be adjusted through the software you are using. Depending on your type of trading system.
If trading system comprises a specific signal out, then you can get out of the trade through the program at your request. If your trading system did not give any signs to get out, you have to wait up to the profit target price Oona gaf process to avoid losses should.
If the trading system has reached its profit target, you should stop trading for the day and close your trading platform.
If not yet to reach the goal of your profit, and the market is still trading strongly, then you can continue trading.
Stock Trading terms
Profit for the capital: the total selling price of the asset exceeds the initial purchase price. This is a gain which is the result of a sale of assets and receive tax treatment more favorable than normal generally gains. One of the assets that have not been sold so far, but that would produce a profit if sold is unrealized gains.
Equity: ownership interest in the company's common stock or preferred stock form. It is also called shareholders' equity, book value or net worth.
Bar code: outline of the letters used to determine the stock or Al mstrk aonha investment funds of up to three characters and use of listed shares, which are traded in financial markets. And use symbols that are used NASDAQ stocks four characters and symbols that have five characters ending with the Tenth's mutual funds.
Volatility: it is the status of price volatility and known by the annual turnover of prices based on the daily prices. Strong volatility is the condition of the stock moves up and down very quickly during the short periods of time. If the stock price barely changed, it means it has low volatility.
Strategies
Purchase Contract: This strategy occurs when the purchase of shares and retained for a long period of time, in spite of market fluctuations. On the assumption that stock prices will rise over the next decade or two, and the whole market goes up, in spite of the rise and fall in the short term that may occur due to either high inflation or sequence of events.
Growth strategy: This strategy is based on investing in those companies that appear to grow faster than others in the same industry. The objective is to achieve capital gains rather than dividends.
Short selling: short selling is the borrowing currency futures contracts or commodity from a broker and sell it then it must be regarded with at a later stage the possibility purchased again and returned to the broker. Trying through this strategy to take advantage of low stock prices, and that the mediator will try to borrow the stock with the assurance that the investor will give it back to him in Khaki.o Profit stage here is the difference in the stock price, which was sold at the beginning and the purchase price when you return, minus any costs and commissions.
Stock characteristics and types
Definition of stock: arrow in the language is derived from the verb meaning contributed Subscribe In the terminology is defined as a document that represents the shareholder in the share capital of the company or that it share in the capital of company funds. It was also identified as a financial instrument is a shareholder's right to be a partner in a company that shares in the capital and could be an asset in trading this financial instrument various commercial ways Balthazar and delivery and has defined the legislator said, "The stock is guaranteed a negotiable instrument issued by the contribution of a representation to part company of its capital "and arrow gives the bearer of many rights, including the right to be determined by its responsibility as far as the value of its shares and has to obtain a share of the profits of the company Ed what the company made a profit and has to dispose of the shares as an asset in whenever he wanted it and not be forced contributor to leave The company without his will and has to recover its stake or what is left of them at the expiration of the company and whether these financial rights, the stock added to it gives him the right to the company's management by attending general assemblies and to participate in the deliberations and nominate for membership of the Board of Directors.
Stock properties
1. equal to the value of the shares: the company's capital contribution is divided into equal shares Value
2. The inability of the arrow to split and do not mind that owns several people share one, but in this case must be represented towards the company people and one of them Fara died shareholder Walt ownership of the stock, which he had with him to several heirs, the share is an integral, nor shall each have a voice in the association shareholders, but they have to agree on the selection of a nominee.
3. determine the responsibility of the shareholder value of the stock: the shareholder does not assume debt and obligations of the Company except to the extent of his shares in the company's capital, and here it should be noted the different values ??of the shares Velshm several values ??are:
Nominal value - is the share value fixed in the instrument and on the basis of which determines the share of the shareholder in the company's profits and may not be the stock issuance for less than face value, but may be reissued to the highest of the nominal value of Leda we were in the process of what is known as a premium version in the event of a capital increase this premium or The increase is deducted from the new shareholders and is considered as a price or entry fee on the new shareholder must be paid and is imposed to achieve a balance between the old and the new of those shareholders and is strictly to inform the new shareholders on the old account Ed entail placing of new shares to new shareholders will benefit what has been achieved the company's good reputation or progress in the areas of exploitation and therefore the end of which old shareholders make up for the real decline in the value of their shares by the new shareholders participate in the accumulated reserves may not be the company also went some scholars to issue shares at a premium version at the founding of the company, because an explicit law is permissible to impose After this premium directly to the company and its activities on the occasion of the capital increase in view of the purpose behind the previous statement issued
Version value is the amount per share to be issued by any amount which the contributor to pay for the share issuance of the stock may not be less than the nominal value only when the capital increase
The real value is the share of the net assets of the company after the share of debt discount and it made a profit if the company thereby increasing the value of their assets on capital are higher than the real value of nominal value.
Market value is the real value of the stock up and down according to the laws of the market and in the light of the value of the company's assets and the general conditions for speculation on the stock and distinguish here between several price per share:
1. open the opening price)) means the first sale and purchase process has in a certain period in the day when the decomposition of daily data for a particular share
2. The price rise (High) means the highest price reached by the stock in a given period could be a year or day and it refers to the point at which had a number of buyers more than sellers and reached their bids to buy the highest possible price and the stop price at this point to the unwillingness of buyers to buy the highest From this price.
3. The price decline low)) and mean less price of a share in a given period could be a year or a day and it refers to the point at which had a number of sellers more than buyers and reached their offerings for sale to the lowest price possible and price stopped at this point to the unwillingness of sellers to sell for less than that price.
4 - close closing price)) means the closing price, which price has closed on a particular day other words, the price of the asset and the shares for a certain period
5 - Asking Price (BID) and means the price offered by buyers to buy a particular share price and this is what you will get when you sell this stock
6 - the asking price (ask) and means the price offered by sellers to sell a particular stock.
Types of stocks
There are several types of stocks in the financial markets, such as (ordinary shares, and free, and excellent, and treasury shares, and restricted and unrestricted), and can distinguish between all these types as follows:
Ordinary shares: is the ownership of the instruments serves as a right of ownership in the company, and give the holder the right to attend the annual General Assembly of the company, and get the dividend if the company made a profit.
Bonus shares: They are distributed to shareholders by owning ordinary shares, and is the bonus shares as an increase in the company's capital, caused by the detention of parts of the company's profits; and therefore have the right to shareholders in this capital increase.
Preferred stock: it allows the owner additional rights not enjoyed by the owner of common stock, such as to get the owner of the primacy of ordinary shareholders to get a percentage of the profits of the company, and the owner has the priority in obtaining rights upon liquidation of the company before the ordinary shareholder

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