Stock Market:
A stock market, equity market or share market is the aggregation of buyers and sellers ( a loose network of economic transactions, not a physical facility or discrete entity) of stocks ( also called shares, which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.
Stock Exchange:
A stock exchange is an exchange where stock brokers and traders can buy and sell shares of stock, bonds and other securities. Many large companies have their stocks listed on a stock exchange. This makes the stock more liquid and thus more attractive to many investors. The exchange may also act as a guarantor of settlement. Other stocks may be traded " over the counter" "OTC", that is , through a dealer. Some large companies will have their stock listed on more than one exchange in different countries, so as to attract international investors.
Stock exchanges may also cover other of securities, such as fixed interest securities ( bonds) or (less frequently) derivatives which are more likely to be traded OTC.
A potential buyer bids a specific price for a share, and a potential seller asks a specific price for the same stock. Buying or selling in the market means that you will accept any price or bid price for the stock. When the bid and ask match the prices, the sale takes place in the first place, on a first-come basis if there are multiple bidders at a given price.
The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a market. Exchanges provide real-time trading information on listed securities, which facilitates price discovery.
The New York Stock Exchange (NYSE) is a physical exchange, with a hybrid market for placing orders electronically from any location as well as on the trading floor. Orders executed on the trading floor enter through members of the exchange and go down to a floor broker who electronically sends the floor trading post to the designated market maker ("DMM") for that stock to trade the order. Submits form. The DMM's job is to maintain a two-party market, ordering security to buy and sell when there is no other buyer or seller. If a bid-ask spread exists, no trading occurs immediately - in this case DMMs can use their own resources (money or stock) to close the gap. Once a trade is made, the details are reported on "tape" and sent back to the brokerage firm, which then informs the investor who placed the order. Computers especially play an important role for program trading.
NASDAQ is an electronic exchange, where all are traded on computer networks. The process is similar to the New York Stock Exchange. One or more NASDAQ market makers will always provide a bid and ask for the price at which they will always buy or sell their 'stock'.
Paris Bourse, now part of Euronext, is an order-driven, electronic stock exchange. It was automated in the late 1980s. Prior to the 1980s, it included an open outer exchange. Stockbrokers met on the trading floor of Palais Brongniart. In 1986, the CATS trading system was introduced, and the order matching system was fully automated.
Stock trading people would prefer to trade on the most popular exchange because it gives the largest number of potential counter parties (buyer to a seller, seller to a buyer) and probably the best price. However, there have always been options such as brokers trying to bring parties together to trade outside the exchange. Some third markets that were popular are Instinet, and later Island and Archipelago (the latter two being acquired by Nasdaq and NYSE, respectively). One advantage is that it avoids the commission of the exchange. However, it also has problems such as adverse selection. Financial regulators have investigated deep pools.
Market participants
Market participants include individual retail investors, institutional investors (eg, pension funds, insurance companies, mutual funds, index funds, exchange-traded funds, hedge funds, investor groups, banks, and various financial institutions), and publicly traded entities. Also trade in corporations. His own stock robo-advisors, which automate investments for individuals, are also key partners.
Market participation demographics
Indirect vs direct investment
Indirect investment involves indirectly own shares, such as mutual funds or exchange traded funds. Direct investment involves direct ownership of shares.
Direct ownership of the stock by individuals increased from 17.8% in 1992 to 17.9% in 2007, while the average value of these holdings increased from $ 14,778 to $ 17,000. Indirect participation in retirement accounts increased from 39.3% in 1992 to 52.6% in 2007, with the average value of these accounts doubling from $ 22,000 to $ 45,000 at the time. Rydqvist, Spizman, and Strebulaev distinguish differential growth in direct and indirect holdings as a tax in the United States. Investments in the two most common vehicles of indirect participation, pension funds and 401ks, are made only when funds are withdrawn from accounts. Conversely, the money used to buy the stock directly is subject to taxation as they generate any dividends or capital gains for the holder. Thus the current tax code encourages individuals to invest indirectly.
Income and wealth participation
There is a considerable difference in the value of hold in participation rates and income levels. In the lower quintal of income, 5.5% of households own their own stock and 10.7% hold indirectly in the form of retirement accounts. The top determination of income has a direct participation rate of 47.5% and an indirect participation rate in the form of retirement accounts of 89.6%. The average price of a directly owned stock in the lower quintal of income is $ 4,000 and at the top level of 2007 earnings is $ 78,600.
The stock market - the well-to-do adventure serial - would not be a stock market if it had no ups and downs. (...) and has many other distinctive features. In addition to the economic advantages and disadvantages of stock exchanges - the advantage that they provide a free flow of capital for industrial expansion, for example, and the disadvantage is that they provide all the convenient way for ominous, sedentary and naivety Do to lose their money - their development has created a complete pattern of social behavior, which is the estimated response to customs, language, and given events. Is accomplished with users. Truly extraordinary is the speed with which this pattern became fully developed after establishment, in 1611, the world's first significant stock exchange - a roofless courtyard in Amsterdam - and the level to which it persists (with variations, this is true ) On the New York Stock Exchange in the nineteen-sixties. Currently stock trading in the United States - a splendid giant enterprise with millions of miles of private telegraph wires, computers that can read and copy the Manhattan Telephone Directory in three minutes, and over twenty million stockholder participants - seemingly Will be A handful of seventeenth-century Dutch people drench in the rain. But the traces of the area are very similar. The first stock exchange was, inadvertently, a laboratory in which new human reactions unfolded. By the same token, the New York Stock Exchange is also a social test tube, contributing to the self-understanding of the human species forever. The behavior of leading Dutch stock traders is depicted in a book called "Delusions of Illusions" written by a rider on the Amsterdam market named Joseph de la Vega; Originally published in 1688, (...) "
- John Brooks, in "Business Adventures" (1968)
“Business ventures with many shareholders became popular with commended contracts in medieval Italy (Greif 2006, 286), and Malmendier (2009) provides evidence that shareholder companies return to ancient Rome. Yet the title of the world's first stock market is worthy of seventeenth-century Amsterdam, where an active secondary market in the company's shares emerged. The two major companies were the Dutch East India Company and the Dutch West India Company, which were founded in 1602 and 1621. Other companies existed, but they were not as large and formed a small portion of the stock market. "
- Edward P. Stringham and Nicholas A. Kroet, "Oxford Handbook of Austrian Economics" [On the Origin of Stock Origin] (2015)
In the 17th and 18th centuries, the Dutch pioneered many financial innovations, which helped lay the foundations of the modern financial system. While the Italian city-states produced the first transferable government bonds, they did not develop the other component necessary to produce a fully developed capital market: the stock market. In the early 1600s, the Dutch East India Company (VOC) became the first company in history to issue bonds and shares of stock to the general public. According to Edward Stringham (2015), "Companies with transferable shares revert to classical Rome, but these generally did not support sustainable efforts and no secondary market existed (Neal, 1997, p. . 61). " Dutch East India. The company (founded in the year of 1602) was also the first joint stock company to receive a fixed capital stock and, as a result, continued trading in company stock on the Amsterdam Exchange. Shortly thereafter, a vibrant trade in various derivatives, from which options and repos emerged in the Amsterdam market. Dutch merchants also pioneered short sales - a practice that was banned in early 1610 by Dutch authorities. Amsterdam-based businessman Joseph de la Vega Confusion de Confusion (1688) was the earliest known book about stock trading and the first book on the internal functioning of the stock market (including the stock exchange).
The gathering on Wall Street (New York City) after the 1929 crash is one of the worst stock markets in history.
Now the world's largest markets are the stock markets of almost all developed and most developing economies in the United States, United Kingdom, Japan, India, China, Canada, Germany (Frankfurt Stock Exchange), France, South Korea and the Netherlands.
Importance
"Even in the days before Perestroika, socialism was never unbroken. Within communist countries, the spectrum of socialism ranged from Yugoslavia, a quasi-market, quasi-constitutional system, to the centralized totalitarianism of neighboring Albania. I once asked Professor von Miesz, the great expert in the economics of socialism, whether he would designate a country as "socialist" on this spectrum of statisticalism. At the time, I was not sure that any clear criteria existed to make that kind of clear judges.
A stock market, equity market or share market is the aggregation of buyers and sellers ( a loose network of economic transactions, not a physical facility or discrete entity) of stocks ( also called shares, which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.
Stock Exchange:
A stock exchange is an exchange where stock brokers and traders can buy and sell shares of stock, bonds and other securities. Many large companies have their stocks listed on a stock exchange. This makes the stock more liquid and thus more attractive to many investors. The exchange may also act as a guarantor of settlement. Other stocks may be traded " over the counter" "OTC", that is , through a dealer. Some large companies will have their stock listed on more than one exchange in different countries, so as to attract international investors.
Stock exchanges may also cover other of securities, such as fixed interest securities ( bonds) or (less frequently) derivatives which are more likely to be traded OTC.
A potential buyer bids a specific price for a share, and a potential seller asks a specific price for the same stock. Buying or selling in the market means that you will accept any price or bid price for the stock. When the bid and ask match the prices, the sale takes place in the first place, on a first-come basis if there are multiple bidders at a given price.
The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a market. Exchanges provide real-time trading information on listed securities, which facilitates price discovery.
The New York Stock Exchange (NYSE) is a physical exchange, with a hybrid market for placing orders electronically from any location as well as on the trading floor. Orders executed on the trading floor enter through members of the exchange and go down to a floor broker who electronically sends the floor trading post to the designated market maker ("DMM") for that stock to trade the order. Submits form. The DMM's job is to maintain a two-party market, ordering security to buy and sell when there is no other buyer or seller. If a bid-ask spread exists, no trading occurs immediately - in this case DMMs can use their own resources (money or stock) to close the gap. Once a trade is made, the details are reported on "tape" and sent back to the brokerage firm, which then informs the investor who placed the order. Computers especially play an important role for program trading.
NASDAQ is an electronic exchange, where all are traded on computer networks. The process is similar to the New York Stock Exchange. One or more NASDAQ market makers will always provide a bid and ask for the price at which they will always buy or sell their 'stock'.
Paris Bourse, now part of Euronext, is an order-driven, electronic stock exchange. It was automated in the late 1980s. Prior to the 1980s, it included an open outer exchange. Stockbrokers met on the trading floor of Palais Brongniart. In 1986, the CATS trading system was introduced, and the order matching system was fully automated.
Stock trading people would prefer to trade on the most popular exchange because it gives the largest number of potential counter parties (buyer to a seller, seller to a buyer) and probably the best price. However, there have always been options such as brokers trying to bring parties together to trade outside the exchange. Some third markets that were popular are Instinet, and later Island and Archipelago (the latter two being acquired by Nasdaq and NYSE, respectively). One advantage is that it avoids the commission of the exchange. However, it also has problems such as adverse selection. Financial regulators have investigated deep pools.
Market participants
Market participants include individual retail investors, institutional investors (eg, pension funds, insurance companies, mutual funds, index funds, exchange-traded funds, hedge funds, investor groups, banks, and various financial institutions), and publicly traded entities. Also trade in corporations. His own stock robo-advisors, which automate investments for individuals, are also key partners.
Market participation demographics
Indirect vs direct investment
Indirect investment involves indirectly own shares, such as mutual funds or exchange traded funds. Direct investment involves direct ownership of shares.
Direct ownership of the stock by individuals increased from 17.8% in 1992 to 17.9% in 2007, while the average value of these holdings increased from $ 14,778 to $ 17,000. Indirect participation in retirement accounts increased from 39.3% in 1992 to 52.6% in 2007, with the average value of these accounts doubling from $ 22,000 to $ 45,000 at the time. Rydqvist, Spizman, and Strebulaev distinguish differential growth in direct and indirect holdings as a tax in the United States. Investments in the two most common vehicles of indirect participation, pension funds and 401ks, are made only when funds are withdrawn from accounts. Conversely, the money used to buy the stock directly is subject to taxation as they generate any dividends or capital gains for the holder. Thus the current tax code encourages individuals to invest indirectly.
Income and wealth participation
There is a considerable difference in the value of hold in participation rates and income levels. In the lower quintal of income, 5.5% of households own their own stock and 10.7% hold indirectly in the form of retirement accounts. The top determination of income has a direct participation rate of 47.5% and an indirect participation rate in the form of retirement accounts of 89.6%. The average price of a directly owned stock in the lower quintal of income is $ 4,000 and at the top level of 2007 earnings is $ 78,600.
The stock market - the well-to-do adventure serial - would not be a stock market if it had no ups and downs. (...) and has many other distinctive features. In addition to the economic advantages and disadvantages of stock exchanges - the advantage that they provide a free flow of capital for industrial expansion, for example, and the disadvantage is that they provide all the convenient way for ominous, sedentary and naivety Do to lose their money - their development has created a complete pattern of social behavior, which is the estimated response to customs, language, and given events. Is accomplished with users. Truly extraordinary is the speed with which this pattern became fully developed after establishment, in 1611, the world's first significant stock exchange - a roofless courtyard in Amsterdam - and the level to which it persists (with variations, this is true ) On the New York Stock Exchange in the nineteen-sixties. Currently stock trading in the United States - a splendid giant enterprise with millions of miles of private telegraph wires, computers that can read and copy the Manhattan Telephone Directory in three minutes, and over twenty million stockholder participants - seemingly Will be A handful of seventeenth-century Dutch people drench in the rain. But the traces of the area are very similar. The first stock exchange was, inadvertently, a laboratory in which new human reactions unfolded. By the same token, the New York Stock Exchange is also a social test tube, contributing to the self-understanding of the human species forever. The behavior of leading Dutch stock traders is depicted in a book called "Delusions of Illusions" written by a rider on the Amsterdam market named Joseph de la Vega; Originally published in 1688, (...) "
- John Brooks, in "Business Adventures" (1968)
“Business ventures with many shareholders became popular with commended contracts in medieval Italy (Greif 2006, 286), and Malmendier (2009) provides evidence that shareholder companies return to ancient Rome. Yet the title of the world's first stock market is worthy of seventeenth-century Amsterdam, where an active secondary market in the company's shares emerged. The two major companies were the Dutch East India Company and the Dutch West India Company, which were founded in 1602 and 1621. Other companies existed, but they were not as large and formed a small portion of the stock market. "
- Edward P. Stringham and Nicholas A. Kroet, "Oxford Handbook of Austrian Economics" [On the Origin of Stock Origin] (2015)
In the 17th and 18th centuries, the Dutch pioneered many financial innovations, which helped lay the foundations of the modern financial system. While the Italian city-states produced the first transferable government bonds, they did not develop the other component necessary to produce a fully developed capital market: the stock market. In the early 1600s, the Dutch East India Company (VOC) became the first company in history to issue bonds and shares of stock to the general public. According to Edward Stringham (2015), "Companies with transferable shares revert to classical Rome, but these generally did not support sustainable efforts and no secondary market existed (Neal, 1997, p. . 61). " Dutch East India. The company (founded in the year of 1602) was also the first joint stock company to receive a fixed capital stock and, as a result, continued trading in company stock on the Amsterdam Exchange. Shortly thereafter, a vibrant trade in various derivatives, from which options and repos emerged in the Amsterdam market. Dutch merchants also pioneered short sales - a practice that was banned in early 1610 by Dutch authorities. Amsterdam-based businessman Joseph de la Vega Confusion de Confusion (1688) was the earliest known book about stock trading and the first book on the internal functioning of the stock market (including the stock exchange).
The gathering on Wall Street (New York City) after the 1929 crash is one of the worst stock markets in history.
Now the world's largest markets are the stock markets of almost all developed and most developing economies in the United States, United Kingdom, Japan, India, China, Canada, Germany (Frankfurt Stock Exchange), France, South Korea and the Netherlands.
Importance
"Even in the days before Perestroika, socialism was never unbroken. Within communist countries, the spectrum of socialism ranged from Yugoslavia, a quasi-market, quasi-constitutional system, to the centralized totalitarianism of neighboring Albania. I once asked Professor von Miesz, the great expert in the economics of socialism, whether he would designate a country as "socialist" on this spectrum of statisticalism. At the time, I was not sure that any clear criteria existed to make that kind of clear judges.