22-06-2016, 04:42 PM
A stock exchange or bourse is an Exchange where dealers and traders can buy and / or sell shares (also called shares), bonds and other securities. Scholarships may also provide facilities for issuance and redemption of securities and other financial instruments, and the events of capital, including the payment of earnings and dividends. Securities traded on a stock exchange are the shares issued by listed companies, mutual funds, derivatives, products, and mutual obligations. Exchanges often operate as "continuous auction" markets, with buyers and sellers use transactions in a central location, such as the floor of the Exchange. [2]
To be able to negotiate a title on a certain stock, it must be included. Usually there is a central location at least for the recordkeeping, but trade is less and less linked in such a physical place, while modern markets using electronic networks, which gives them advantages of increased speed and reduction of transaction costs. Trade on an Exchange is limited to brokers who are members of the Exchange. Over the past years, various other sites of negotiation, such as electronic communications networks, alternative trading systems and "dark pools" took a large part of transaction activity in traditional scholarships. [3]
The initial public offering of shares and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A scholarship is often the most important component of a stock market. Supply and demand on the stock markets are driven by various factors which, as in all free markets, affect the price of the shares (see the stock assessment).
It has usually no obligation for the stock to be issued via the Stock Exchange itself, nor must be subsequently stock-exchange-traded. These operations may be off Exchange or over-the-counter. This is the usual way that derivatives and bonds are traded. More and more, the scholarships are part of a global market securities.
companies in capital intensive, particularly high-tech companies, still need to raise high volumes of capital in their early stages. For this reason, the public market provided by the stock exchanges has been one of the sources of the most important funding for many startups capital-intensive. After the 1990s and early 2000s boom and recession of hi-technology companies listed on the major exchanges in the world, it has been much more demanding for the high-tech entrepreneur to take his / her public company, unless the company already has products on the market and is to generate sales and profits , or the company has completed the advanced promising clinical trials, got potentially profitable patent or market conducted studies which have shown very positive results. This is quite different from the situation of the 1990s until the early 2000s period, when a number of companies (in particular the boom of the Internet and biotechnology companies) became public on stock exchanges leading around the world, in the absence of sales, profits and well documented promising results. Whatever it is, each year a number of companies, including unknown startups hi-tech financially unpredictable and highly speculative, are listed for the first time in all major stock exchanges - there are markets of entry, even specialized in this kind of companies or stock indices of monitoring of their performance (examples Alternext, CAC Small, SDAX, TecDAX (, or the third most market good companies).
