What is the stock market and what is stock exchange trading?
Trading on the stock exchange It is a complex thing that requires financial and economic knowledge, regardless of additional knowledge, related to trading itself and the financial instruments through which it is possible to trade, including sophisticated digital trading systems. It is important to know well the main players who trade in the capital market, banks, brokers and investment houses, and to be able to make quick and accurate decisions. The stock market is not child’s play, a lot of money flows through its veins and as potential investors, you surely understand that your money will also flow through these veins. What is happening in the stock market? Well, Stock trading , trading in securities, trading in bonds, trading in basket funds, and trading in options and various commodities. It is not for nothing that the capital market is called the capital market, as in any market, trading on the stock exchange includes sellers of goods and their buyers, who, after agreeing on the price and quantity, carry out the transaction. The goods, for the most part, are various securities.
Why do companies choose to trade on the stock exchange?
Companies choose to integrate in trading on the stock exchange in order to finance their activities and leverage their business growth. The process of joining the stock exchange is called an “IPO”, that is, the companies issued percentages of their ownership and sold them to the general public or, more precisely, to the public of investors who trade on the stock exchange, through bonds (a type of loan that the company took from the public, in exchange for the payment of the principal and with the addition of interest after some time). In the stock market you can also find bonds of government companies that were privatized and sold to the public.
The rules according to which a company can go public
There are rules and criteria for an IPO, companies seeking to go public must comply with these rules and criteria, set by the Securities Authority and the stock exchange itself. From the moment a company’s IPO process is completed, its securities enter the computerized trading arena, the company becomes public, and as a result, it must conduct itself with complete transparency in front of the investing public, produce regular reports to the stock exchange, the Securities Authority and the public.
How do you trade in the stock market?
Stock trading is carried out through professionals (stock exchange members), such as: banks, investment houses and brokers, who transmit, on behalf of their clients, sell and buy orders. A person who wants to invest and trade in the stock market should open an investment account with one of the approved members of the stock market. Why are you happy? Because they are supervised by the stock exchange, which gives traders an insurance certificate against fraud and embezzlement.
Definition of investors
Investors in the stock market are categorized into two groups: private investors and institutional investors. The private ones are citizens of the general public, while the institutional ones, in contrast, are financial entities that manage funds for the public through savings instruments such as: pension funds, executive insurance, training funds and provident funds. Therefore, it can be said that even people who are not among the investors in the stock market are indirectly invested in the capital market, using one of the instruments
These financials.