Stock exchange

The stock exchange

The stock exchange is a private organization that provides tools for members, attending the mandates of its clients, and conduct negotiations enter orders to buy and sell shares, such as shares in companies or joint stock companies, public bonds and private facilities , degrees of participation and a wide range of investment instruments.

The trading of securities on the stock markets is based on a known and fixed prices in real time, in a secure environment for the activity of investors and where the mechanism is fully regulated transactions, ensuring the legality, security and transparency.

Stock exchanges strengthen capital markets and drive economic and financial development in most countries of the world where there are, in some cases for centuries, from the creation of the first institutions of its kind created in the first seventeenth century.

The institution stock exchange, in a complementary manner in the economy of the country tries to meet three main interests:

The company, because by placing its shares on the market and be purchased by the public, this gets the necessary funding to meet its goals and generate wealth.

The savers because these become investors and can obtain benefits from the dividends that accrue to them their actions.

The State, because, even in the stock market, has a means to finance and tackling public spending and advance new projects and outreach programs.

Participants in the stock market are basically the plaintiffs capital (companies, public or private organizations and other entities), capital suppliers (savers, investors) and intermediaries.

Securities trading on exchanges is done through exchange members, usually known by the name of brokers, licensed securities brokerage companies, brokerage firms, commission agents or operators, according to the description given in each country, who do their work in exchange for a commission. In many markets, other entities and individuals also have partial access to the stock market, as they are called to all activities of primary and secondary market transaction and placement of issues of equities and fixed income.

Today, the stock exchange systems operate with some forecasting methods that allow corporations and investors have a framework of how the market will behave in the future and therefore make good decisions portfolio. These systems operate on the basis of historical and mathematical data.

To list its securities on the Exchange, companies must first make public its financial statements, because through them we can determine the indicators to know the financial situation of the companies. Stock exchanges are regulated, supervised and controlled by nation states, although most of them were founded in pre-creation dates official supervisory bodies.

Several types of markets: the money market or money market, the stock market, the market of options, futures and derivatives, and commodity markets. They can be classified into organized markets and markets desk.