Stock Market Price Of Shares example essay topic

A stock exchange is a place where you can buy and sell shares. We call people who buy or sell small numbers of shares small investors. Organizations, who buy or sell large numbers of shares, are institutional investors. A stock exchange is the place where companies can raise money to expand their businesses. Companies raise this money by selling shares to investors.

At the same time the stock exchange gives investors an opportunity to invest in these companies and benefit from any profits they may make. The Stock Exchange is the organization which provides the principal markets for the issue of, and the buying and selling of, publicly quoted shares in the US. It brings companies and investors together, provides rules to ensure the markets work efficiently and fairly, and monitors the operation of its markets to ensure that its rules are being obeyed. The Exchange also provides markets in corporate loan stocks, Government securities and international securities. Companies whose shares are traded on the Exchange are known, in general, as 'quoted companies' and may be admitted to the main market of listed shares and securities or to the Alternative Investment Market that NASDAQ represents Stock broking firms and other securities houses, if they are 'members' of the Exchange may trade directly in shares and securities on the Exchange, on behalf of their clients. The Exchange makes sure that its quoted companies and firms which are members comply with the Admission and Disclosure Standards or the Rules of the Stock Exchange, as appropriate.

One should also note forget about the fact that the Admission and Disclosure Standards cover the issue of listed shares and securities, and companies' ongoing disclosure standards towards their shareholders. Thus, whenever something suspicious happens to the stock price, one can ask the agency to investigate on the matter, yet if a Japanese Yen or a German Mark had plummeted, no one is able to blame or investigate the Japanese German government about the given issue that could cost thousands of people their jobs and savings. The Rules of the Stock Exchange cover the way shares are traded on the Exchange's markets by firms which are members. They also cover companies whose shares are traded on AIM. A booklet outlines the role of the Exchange and provides guidance on those issues which fall to the Exchange to regulate and those which may be appropriate for consideration by other regulatory organizations. It details how to make a complaint to the stock Exchange, and how to take a complaint further should the stock Exchange's response be unsatisfactory or inappropriate from the legal point of view.

You normally buy shares in lots of 100. When you give your stockbroker the order to "buy" he will buy your shares. He will buy them at the best price in the market. You become the owner of the shares from the time the sale is concluded. The stock market price of shares is influenced by many factors. The prices are formed by the supply and demand and not in an auction style manner.

The open outcry is the way orders are placed on the trading floor. When you give your order to buy, your stockbroker must tell you whether he is acting either as an 'agent' or as a 'principal'. If he acts as an agent your stockbroker will go out to the marketplace and let other stockbrokers know that you wish to buy shares from their customers if they are willing to sell. If on the other hand, he tells you he is acting as a principal, you will be buying shares that the stockbroker has bought and is holding for his firm's account, which he could sell directly to you. A stockbroker must not charge you commission when you buy your shares directly from the stockbroker's firm, which is the principal. You will, however, still have to pay the tax according to the value of the shares you buy.

Within a few days, you will receive a broker's note in the mail. This broker's note is an important document. It shows the details of the deal that the stockbroker has carried out for you. It also tells you how much you have to pay the stockbroker for the shares he has bought for you. Keep it safely for your records. The share certificate will arrive later.

Your share certificate shows how many shares you own. It is also an important document, so keep it in a safe place. You will need the share certificate if you want to sell the shares at a later stage. You must pay for the shares you have bought on the spot or within seven business days from the date of the confirmation of the trade as agreed with your stockbroker. In conclusion I would like to note that these two markets, Forex and Stock exchange are different in the way the order is placed, executed. These two markets have different instruments that are traded and different rules that govern the price formation and the execution of the order.

These two markets also are different in a way they are controlled, with the stock exchange market being highly controlled by the US government and the SEC, while with for ex is not controlled directly by one single government but can rather be controlled indirectly by the central bank or the US FED.

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