Ways To Understand The Stock Market
If you want to be a trader then you should learn the ways on how stock market works so that you an make an easy trading once you engage in it. 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?
The basic definition of a stock market is it is where the different stocks of different companies are traded and floated and it is a big collection of exchanges. Every country in the world practically has a single stock market where the exchanges and trading of different companies within that country occurs. The trading on stock markets is also trading on a global level and there are several countries in the world where global trading occurs in their financial centers.
If you are new to stock trading, then you should probably know that not all stocks are traded and trading a stock have different criteria that needs to be met before a stock is considered tradable. Stocks management and control is done by different regulatory bodies world wide that monitors, controls and manages these stocks in the stock market. Certain countries have certain regulatory bodies that are assigned for the proper management and control of the stock exchange flow in the market. Security for the investors’ interests is also enforced by these regulatory bodies while the stocks of the investors are listed in the market. What is most convenient about these regulatory bodies is that they are not related to government agencies and policies since they have their own policies to enforce as an independent regulatory committee.
Stock Market Security Types
Most of the available securities in the stock market can be available right away and the others 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. The assigning of the newly listed security is done by the regulatory bodies,they are given the trade post where they will serve their purpose and assigned to any company at random.
The use of an over the counter security is done by companies who are also not listed. 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: real estate investing