Getting to Know the Stock Exchange

Anyone who has $5000 can already become an investor on the stock market. All they have to do is to enrol an account with a trading firm and they will get assigned a broker who will complete the transactions for them. The trading can be done either on the exchange floor or online.

Getting to Know the Stock Exchange

The current trend is for the trading firms to be rid of their brick and mortar businesses in exchange for the Websites. This will not only make the firm more global but they could also save a lot of costs.

The Stock Market allows investors to exchange through buying and selling the shares of stocks of a certain company. This is an approved method for making trade based on the current prices and speculations. The stock market has a lot of rules and regulations and it is illegal and punishable by law if there is price fixing and inside trading involved.

For public consumption

All stock prices are open to the public that is why it can be featured on television. The prices can fluctuate depending on several factors and these fluctuations will allow the investor to buy and sell the stocks that they are investing in. these trades are done by a stock broker and cannot be done alone even if it is done online.

Clearing Firms

The clearing firm will guarantee that your trade is done and does the transfer and recording from both the company and the investors. This is a guarantee that there is no information or data the ‘gets lost’ in the process. The clearing firm will send a notice of a trade to the investor via mail

Regulatory Bodies

All investors are given a limit, meaning they can only trade in a limited number of shares. This is to make sure that the stocks remain liquid. There are regulatory bodies for each kind of stock exchange which will handle the complaints, if there are any, regarding a certain transaction.

Getting to Know the Stock Exchange
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