Understanding The Stock Market In Many Ways
Engaging in trading takes a lot more than just brains, it also needs the basic insight on the ways stock market works and without his knowledge, trading will not be an easy job to do. There are several information that you must know before starting to trade and the top most important question that needs answering before trading is what really is a stock market and what does a stock market usually does?
What Is The Nature Of The Stock Market?
The stock market is where the stock trading and floating of different companies takes place, basically it is a large collection of exchanges. Most of the countries of the world if not all, have practically one stock market which they are using for the stocks trading of the different companies within the country. Since there are stock markets in each of the countries in the world, global trading is also done in one of these stock markets particularly on financial centers of selected countries.
For a stock to be enlisted in the stock market and traded, there are certain criterias that are imposed and must be met before any stock is listed for trade in the stock market. Stocks management and control is done by different regulatory bodies world wide that monitors, controls and manages these stocks in the stock market. Every country in the world also have their designated regulatory body to regulate and control the flow of stocks in the global stock market. Security for the investors’ interests is also enforced by these regulatory bodies while the stocks of the investors are listed in the market. Stock regulatory committees can be considered as an independent committee which is not affected by government policies and does not answer to any government bureau as well.
The Different Types Of Stock Market Securities
Stock markets often have two security types, the ones that are easily availed and then there are the ones that are listed. The listed securities in stock markets are the ones responsible for the security of the trading that occurs in the stock markets. Before thee listing of any securities in the stock market, they also have specific requirements that must be m,,et including the reporting and financial reports of the security. After a certain security passed and met the required criteria, they then are regulated by the same regulatory bodies which are also responsible for enlisting them in the exchanges they are listed. These listed securities could be assigned to any company.
Most of the non listed companies use over the counter securities. These over the counter securities does not meet the criteria set by the regulatory body and they mostly are hired by small companies. The establishing of outside investments are one of the reason why over the counter securities are still available.
Source: stock market