Understanding The Stock Market In Many Ways
Engaging in trading takes a lot more than just brains, it also needs the basic insight on the ways stock market works and without his knowledge, trading will not be an easy job to do. The first two information that you need to know before engaging in trading is the natural ways on how stock market works, and what it is in general.
What Really Is A Stock Market?
A large collection of exchanges would be the best definition of a stock market, in general it is where the floating and trading of the stocks of different companies occur. Every country in the world practically has a single stock market where the exchanges and trading of different companies within that country occurs. Since there are stock markets in each of the countries in the world, global trading is also done in one of these stock markets particularly on financial centers of selected countries.
Though stock markets is where you trade stocks of different companies, before a stock can bee traded it is evaluated if it meets the required criteria, Stocks management and control is done by different regulatory bodies world wide that monitors, controls and manages these stocks in the stock market. For a much better control of the stocks that are traded in stock markets, each individual countries have their own regulatory bodies that will allow them to manage and control the stocks flow. These regulatory bodies are also the ones that provides security to the investors in the stock market upon listing the stocks to be traded. Stock regulatory committees can be considered as an independent committee which is not affected by government policies and does not answer to any government bureau as well.
Securities In Stock Markets And Their Types
The usual available securities in the stock market are over the counter and the ones that are listed. The listed securities in stock markets are the ones responsible for the security of the trading that occurs in the stock markets. Before thee listing of any securities in the stock market, they also have specific requirements that must be m,,et including the reporting and financial reports of the security. After the enlisting of the security in a stock market, the security is being listed and then given the exchanges where they are required to serve. After the enlisting is done by the regulatory bodies, the security is listed on many trading activities where they could potentially handle the security demands of any company in the market.
Non listed securities or over the counter is used by companies that are non listed as well. Since over the counter security is not listed, most of the companies that hires its service are the small private ones. The establishing of outside investments are one of the reason why over the counter securities are still available.
Source: forex trading