More about GSE

Since its inception, the GSE's performance has varied considerably. All listings are included in the main index, the GSE All-Share Index. In 1993, the GSE was the 6th best index performing emerging stock market, with a capital appreciation of 116%. In 1994 it was the best index performing stock market among all the emerging markets, gaining 124.3% in its index level. 1995's index growth was a disappointing 6.3%, partly because of high inflation and interest rates. Growth of the Index for 1997 was 42%, and at the end of 1998 it was 868.35 (See 1998 Review for more information).As of October 2006 the market capitalization of the Ghana Stock Exchange was about ($11.5bil) 111,500bil cedis. As at December 31 2007, the GSE's market capitalization was 131,633.22bil cedis. In 2007 the index appreciated by 31.84%. (See "Publications" section on GSE's site for more information)
The manufacturing and brewing sectors currently dominate the exchange. A distant third is the banking sector while other listed companies fall into the insurance, mining and petroleum sectors. Most of the listed companies on the GSE are Ghanaian but there are some multinationals.
Although non resident investors can deal in securities listed on the exchange without obtaining prior exchange control permission, there are some restrictions on portfolio investors not resident in Ghana. The current limits on all types of non-resident investor holdings (be they institutional or individual) are as follows: a single investor (i.e. one who is not a Ghanaian and who lives outside the country) is allowed to hold up to 10% of every equity. Secondly, for every equity, foreign investors may hold up to a cumulative total of 74% (in special circumstances, this limit may be waived).The limits also exclude trade in Ashanti Goldfields shares.

Ghana Stock Exchange

The Ghana Stock Exchange (GSE) is the principal stock exchange of Ghana. The exchange was incorporated in July 1989 with trading commencing in 1990. It currently has around 30 listed companies and 2 corporate bonds. All types of securities can be listed. Criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency. The GSE is located in Accra.

ASE and the European Stock Exchange

In 2007, the Greek government took the first steps to get the Athens Stock Exchange listed with Euronext, a European Stock Exchange Group. As the second largest stock exchange in the world, Euronext provides many benefits and opportunities for its members. In 2008, representatives of the ASE signed the "Link Up Markets" agreement. This program is designed to ease trading and fees between European stock exchanges. As a result of these actions, the security risk of the ASE was upgraded in 2008 to make reflect higher levels of security for investors.

Athens Stock Exchange

The Athens Stock Exchange is headquartered in Athens, Greece. It provides a medium for Greek companies to sell shares to investors, and for investors to buy stocks, bonds and other financial products. Though it is relatively small in size compared to other world exchange markets, the Athens Stock Exchange faces many opportunities to grow as trade within the European Union expands to the Greek markets.

Political effects are for short time

As everybody knows political effects on stock markets are always short living. We will see a decent correction tomorrow on the IMKB index for sure. A lot of good news like growth rates over 6 %, succesfull Privatisations high earnings in the Turkish Banking sector would boost the turkish markets if it would not be effected by Dow, Ftse and Dax, indeed this 5 % loss was triggered by the losses in Europe and has little to do with Politics.

Market Trend

A decade ago in the heady days of 'capitalism's final triumph', when the New World Order was announced and the End of History proclaimed, the century old industry of writing learned tomes under which to bury the ideas of Marxism appeared to have become redundant. Yet before one could finish reading a single volume of these confused scribblings, the New World Order choked beneath the ashes of war in the Balkans; the south east Asian economies collapsed; leaving the New Paradigm hanging by the single thread of the innovations associated with new technology

Safe Heavens

Such safe and miliatary strong countries are known as “Safe Heavens”. One of the best examples may be the U.S. You can see that in situations with political unrest, the U.S. dollar tends to increase in value. The Swiss franc is also counted as a “Safe Heaven”, not because of its military strength but because of its neutrality, which in a way ensures that it will be a neutral and safe haven at political and military disputes in the future.

Political unstability and valuation of assets

Political uncertainty in any country makes it difficult to value assets in the future, since unexpected policy decisions may quickly change the valuation of a currency. In such situations, the exchange rates tend to weakened and be more volatile. At the same time, the willingness of investors to have their money invested in the country fall sharply, because you do not know exactly which politics will be conducted in the future.
As an example of political unrest, we have Venezuela been talking about nationalizing certain assets and later also done that. In such situations, investors are forced to sell their assets, way below market prices. The one only only allowed buyer will be the state. In such situations, many investors escape, thus reducing the demand of the currency and weaken the country’s exchange rate.
Other examples of political concern is when a country changes its government all too often and thus are not consistent with their elections. It creates political uncertainty because you do not know exactly when and how a new government will lead the country.
Around election year there may be some political unrest, especially in countries where the outcome are very uncertain. This may of course lead to volatile exchange rate.

Political risk effects exchange market

A factor that may highly influence the exchange rate in the short, medium and long term are political unrest as in Pakistan . The main reason is that it is difficult to estimate what will happen in a country with political unrest.It also give questions about how economic policy will look like in the future. As an investors, you probobly have to pay for this kind of concern, which may be reflected in the exchange rate and foreign investment in the country.

Trading fear

          My trading strategy is not one that will have me so exposed to any particular trade that if something bad happened I would be wiped out. Because of this, my fear isn’t that I will someday have to take a giant loss on a bad trade. Yes, I will be wrong and take my medicine, but that’s not a big concern to me.

The losing streak is the big bad ugly monster I don’t want to fall victim to. I’ve known a number of traders who allowed losing streaks to continue, and it’s scary. A losing streak leaves a trader not knowing which way is up. During a losing streak, you don’t know what to trade, when to trade, or which way to trade. You don’t know which indicators are meaningful and which are useless. Choppiness looks like a tradable pattern and what ultimately gets chopped up is your account. You’ll change your approach daily, never giving any strategy a fair evaluation. You may even start trading opposite of what you think, just to put an end to it. In short, you become clueless, and are never the same.

No thank you!

Every trader needs capital to trade. Cash in an account is one type of capital, but psychological capital is certainly another equal requirement. A trader must have the courage to act on his convictions and put that cash into play. Losing streaks cost money, no doubt, but more importantly they cost a trader confidence. Money can be borrowed, but without confidence, a trader simply becomes a cash holder with no ability to seize opportunity.

Trading having no imotion

Making and losing money in the blink of an eye while trading evokes all sorts of emotions. It’s so easy to get excited when a trade develops exactly like your plan. It’s equally easy to get frustrated and mad when a stock goes the wrong way and you know another trader is collecting on your mistake.
But when was the last time your emotions helped you in a trade? Has that positive excitement ever been costly to you, causing you to either book profits too early or stay in too long (feeling like it was easy)? Has your anger ever led you to put on grudge-trades, trying to “make back” your money quickly after a loss? It’s obvious to see that emotions are detrimental to your wealth!
I took up golf seriously when I was 13. My dad had always been a scratch player, so I had a great teacher for all aspects of the game. After I had been practicing and playing every day for several months, an important day arrived. He and I were playing golf one afternoon and on the 9th green, I had my first putt ever to break 40. It was about 2 ½ feet long and I should have been able to make it in my sleep. BUT, I was focused on my score rather than the process. I missed the putt, shot 40, and was mad the rest of the day. I wondered how long I’d have to wait for another chance at a meaningful putt like that. My Dad made some comments which helped me then and continue to help me now. He said I rushed my effort and was clearly thinking about score (results) rather than making the putt (the process). He suggested I implement a pre-shot routine, which is a mental and physical checklist to go through prior to each shot. Doing so would help me to focus on the process rather than the result. I broke 40 a few days later, excited about this new discovery.
Trading with a systematic approach can have the same positive effects on your profitability that my pre-shot routine gave me in golf. Even if you take discretionary trades, going through a routine and focusing on the process will let you execute your trading plan much better than watching your account balance fluctuate and having your emotions flutter just as often. This might mean that each evening you do some research or screen for chart patterns. It might mean you read a stock newsletter, scan the news, or set up conditional alerts as a safety net to your trading. Maybe it just means you go through the same routine each morning, adding some structure to your day and leveling out your emotions. Whatever it may mean for you, I highly suggest implementing some kind of trading routine to help combat the emotions that every one of us faces with trading. You’ll have time to do all of your celebrating later!

Stock on downtrend

Everyone wants a great deal. If you don’t think so, just consider the day-after-Thanksgiving sales with people lined up outside the stores at 5am to buy merchandise on sale. We want things now and we want them cheap! When it comes to stocks, however, I know better.
They say to buy low and sell high. It’s a good concept if you can get it to work, but it implies that buying low is the first thing to do. Novice stock traders look to buy “cheap” stocks, whether it’s just a low-priced stock or a stock well off its highs. Remember, cheap stocks tend to be cheap for a reason!
Low-dollar stocks often fall into one of two categories: the former high-fliers which have split so many times and come down so far that they are simply too liquid and “thick” to make much of a move (LU, NT, etc.), and stocks which are cheap because they fizzled out long ago and no buzz has been generated since. These kinds of stocks don’t move enough for an active trader, unless you are as interested in trading so many shares that your broker makes as much in commission as you do in profits.
A downtrending stock is making lower highs and lower lows. Money is coming out of it. People are walking away in search of finding something more attractive. When you buy a stock, you want it to go up, so look for stocks with some buzz, some positive activity, and some momentum.

Swing Trading

Trade the best opportunities and add consistency to your trading with our nightly swing trading service and stock newsletter! Gain valuable insights & guidance from an experienced trader day after day with a detailed trading plan for the following session. Sharpen your trading skills by learning to locate potential trades and manage them properly once you're in.

Triple Bottom Pattern

Chart patterns work the same on an intraday basis as they do on a daily chart. Today I was watching GRMN, which had been weak all day and was nearing the lows of the day. I actually was waiting for a breakdown to short sell the stock, but once the lows held, I noticed a familiar pattern – the triple bottom pattern. Immediately I bought the stock and set my stop loss for the low of the day. Momentum began to build as the shorts started to get squeezed, and I had quite a nice winner on my screen. While I didn’t catch the entire move up, I did catch a big piece of the move and it was great for my P&L.
Triple bottom patterns aren’t just found on daily charts - they can also be found and traded on an intraday basis.
Be sure to apply well-known chart patterns to your day trading as well as your swing trading. Being a flexible trader with a willingness to change directions when your original thesis is proven wrong can pay off very nicely!
Jeff White

Excitment on falling prices

              I become more and more excited every time the markets drop. No, not because I am
short the market, but because there is opportunity developing in the markets. One of
the biggest differences that I have noticed since trading successfully (vs.
unsuccessfully) is the excitement that I feel when the markets begin performing poorly.
When I first started trading, I would find myself disappointed when the markets
performed poorly and gleeful when the markets were rising. It only makes sense.
When the markets were rising, I was making money; I was hopeful. I felt that there was
more to come, and I would often buy more positions especially since I found myself
having more buying power during these periods. Then, out of nowhere, the markets
would begin to fade, and I would lose my newly created capital. Often, I would lose
more on the way down then I made on the way up. Certainly this was because I had
more capital invested on the way down. If this sounds familiar…it is time to change.
The first thing to understand is that the more risk that is involved, the more discounted a
position is. You get paid to take on risk. This is essentially how markets work. When a
stock position goes down day after day, it is “risky” to enter the position. After all, you
do not know when it is going up. Once it begins moving upwards–then, we all feel more
comfortable (it has started going up, so there is less risk of it going down–the
downtrend has broken), but we now must pay a higher price. Some people feel that it
must go up over several days and clearly break itsʼ downward movement (more safety,
less risky). Unfortunately, once the stock is much safer, it is also more expensive. And,
those that had taken on the risk are now paid (to sell it in the safer, less risky
environment).

How to reduce the risk

Determining how much of a currency, stock or commodity to accumulate on a trade is an often overlooked aspect of trading. Traders frequently take a random position size; they may take more if they feel "really sure" about a trade, or they may take less if they feel leery. These are not valid ways to determine position size. A trader should also not take a set position size for all circumstances. Many traders take the same position size  regardless of how the trade sets up, and this style of trading will likely lead to under performance over the long run.

More Profit

While many people still prefer the "fire and forget" nature of investing in mutual fund, more and more people are rediscovering the excitement and benefits of trading individual stocks. No doubt, this has been aided by the growth of on line trading, cheap commissions and a realization that many high-paid advisors and Wall Street research departments consistently fail to outperform low-cost mutual fund strategies.

Money Market

In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term liquidity funding for the global financial system. The money market is where short-term obligations such as Treasury bills, commercial paper and bankers' acceptances are bought and sold.

Future of stock exchange

The future of stock trading appears to be electronic, as competition is continually growing between the remaining traditional New York Stock Exchange specialist system against the relatively new, all Electronic Communications Networks, or ECNs. ECNs point to their speedy execution of large block trades, while specialist system proponents cite the role of specialists in maintaining orderly markets, especially under extraordinary conditions or for special types of orders.

The ECNs contend that an array of special interests profit at the expense of investors in even the most mundane exchange-directed trades. Machine-based systems, they argue, are much more efficient, because they speed up the execution mechanism and eliminate the need to deal with an intermediary.

Historically, the 'market' (which, as noted, encompasses the totality of stock trading on all exchanges) has been slow to respond to technological innovation, thus allowing growing pure speculation to continue. Conversion to all-electronic trading could erode/eliminate the trading profits of floor specialists and the NYSE's "upstairs traders", who, like in September and October 2008, earned billions of dollars selling shares they did not have, and days later buying the same amount of shares, but maybe 15 % cheaper, so these shares could be handed to their buyers, thereby making the market fall deeply.[

More about stock exchange

A stock exchang is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks (see stock valuation).

Stock Market Cycles

If a person wants to understand stock market cycles and develop a focused, thoughtful, and solidly grounded valuation approach to the stock market must read this book. Bolten explains the causes and patterns of the cycles and identifies the causes of stock price changes. He identifies the sources of risks in the stock market and in individual stocks. Also covered is how the interaction of expected return and risk creates stock market cycles. Bolten talks about the industry sectors most likely to be profitable investments in each stage of the stock market cycles, while identifying the stock market bubble and sinkhole warning signs. The role of the Federal Reserve in each stage of the stock market cycle is also discussed.

back testing

Maybe a PC tells you that a given trading system would have made or lost X dollars over the past 6 months. So what? Isn’t the market always in motion, always changing? If it is so easy to just figure out what worked over the past month and apply it toward the coming month, then wouldn’t the market be showing us some phenomenal trends right now with everyone pushing stocks in the same direction rather than the back-and-forth choppy action we see so much of?
Instead, we’re getting a LOT of program trading that keeps things choppy as dips are bought and rallies are sold. With the trendless market, it has truly become a market of stocks. Good swing trading right now is about doing your homework to locate good technical patterns and then keeping your risk/reward in check.
Don’t let glossy advertising from software vendors fool you into thinking that your trading strategy just isn’t complicated enough. Remember Gartman’s rule and the simplicity it offers. Keep tabs on the market environment and adjust your trading plan accordingly. If a good trend exists, then look for some continuation setups like flag patterns and triangle patterns. If prices are stuck in a range, then consider some reversal setups like the double top or trade a channeling stock. Your ability to adapt to existing conditions is what will add to your P&L, not your ability to backtest effectively.

Selection of trade

Successful trading is about managing trades once you are in them, regardless of where they came from. I think a great trader could probably turn a profit taking random trades, as long as he manages them well. Now I do believe that finding quality chart patterns is essential, mostly because trading good setups in liquid stocks allows for the best risk/reward relationship on the front end. That is why I run my swing trading website – to highlight the best charts in the market for potential trades. My trade selection process is based on my ability to manage those trades, therefore I want to find only the best. Why not predetermine your stop in case you are wrong by taking the trades with a natural stop-loss nearby?Having said that, let me touch on the last comment regarding stops. One of the first things I want to know before I take a trade is how much I am likely to lose in case I am wrong (and I will definitely be wrong some of the time). This helps me to determine two things: position sizing and profit expectation. If I am willing to lose $1000.00 on a trade and the natural stop is 1 point away, then a position size of 1000 shares will be obvious.

How to find stock for trade

Producing a stock newsletter every night requires finding good chart patterns on a regular basis for members of my service. My inbox is frequently full of inquiries of just how to go about finding chart patterns for trading. The short answer is that I look for them!Each afternoon following the market close, I use TCNet by Worden Brothers to scan for stocks which meet a variety of criteria. This tool is essential to my finding good trade setups for my own trading and for my newsletter. Because I trade the stocks in my newsletter, I want to find and highlight only the best technical setups.The scans I run are basic, filtering out the low volume stocks and cheap stocks which don’t move enough for short-term trading. I generally will cut out all stocks below $10.00, and will rarely look at a stock with less than 250,000 shares/day average. This leaves me with a large list of stocks which have adequate volume for getting in and out of trades with minimal slippage, as well as stocks which have a larger range of movement.From this point, I sort the list according to how strong or weak the stocks closed that day. Stocks which finished at their highs for the day are at the top of the list, and stocks that closed at their lows of the day are at the bottom of the list. Sorting stocks by this method helps me to find more long trading candidates at the top of my list, while finding more shorting candidates (weak stocks) at the bottom of my list.

The New York Stock Exchange (NYSE) uses an agency auction market system which is designed to allow the public to meet the public as much as possible. The majority of volume (approx 88%) occurs with no intervention from the dealer. Specialists (specs) make markets in stocks and work on the NYSE. The responsibility of a spec is to make a fair and orderly market in the issues assigned to them. They must yield to public orders which means they may not trade for their own account when there are public bids and offers. The spec has an affirmative obligation to eliminate imbalances of supply and demand when they occur. The exchange has strict guidelines for trading depth and continuity that must be observed. Most academic literature shows NYSE stocks trade better (in tighter ranges, less volatility, less difference in price between trades) when compared with the OTC market (NASDAQ). On the NYSE 93% of trades occur at no change or 1/8 of a point difference. It is counterintuitive that one spec could make a better market than many market makers (see the article about the NASDAQ). However, the spec operates under an entirely different system. The NYSE system requires exposure of public orders to the auction, the opportunity for price improvement, and to trade ahead of the dealer. The system on the NYSE is very different than NASDAQ and has been shown to create a better market for the stocks listed there. This is why 90% of US stocks that are eligible for NYSE listing have listed.
A specialist will maintain a narrow spread. Since the NYSE does not post bid/ask information, you need to check out the 1-minute tick to figure out the spread. In other words, you'll need access to a professional's data feed before you can really see the size of the spread. But the structure of the market strongly encourages narrow spreads, so investors shouldn't be overly concerned about this.
There are 1366 NYSE members (i.e., seats). Approximately 450 are specialists working for 38 specialists firms. As of 11/93 there were 2283 common and 597 preferred stocks listed on the NYSE. Each individual spec handles approximately 6 issues. The very big stocks will have a spec devoted solely to them.
Every listed stock has one firm assigned to it on the floor. Most stocks are also listed on regional exchanges in LA, SF, Chi., Phil., and Bos. All NYSE trading (approx 80% of total volume) will occur at that post on the floor of the specialist assigned to it. To become a NYSE spec the normal route is to go to work for a specialist firm as a clerk and eventually to become a broker.

Brief history of Shanghai stock exchange

Established in late 1990 as a nonprofit organization, regulated by the China Securities Regulatory Commission. A shares are restricted to domestic investors, while B shares are open to all investors. Bonds traded on the exchange include government, corporate, and convertible. Trading hours for B shares are 9:30 A.M. to 11:30 A.M. and 1 P.M. to 3 P.M. Monday through Friday.

Auction Exchanges

TheAMEXand NYSE are both primarily auction-based, which means specialists are physically present on the exchanges’ trading floors. Each specialist "specializes" in a particular stock, buying and selling the stock in a verbal auction. These specialists are under competitive threat by electronic-only exchanges that claim to be more efficient (that is, execute faster trades and exhibit smaller bid-ask spreads) by eliminating human intermediaries. The NYSE is the largest and most prestigious exchange. Collectively, as of December 31, 2007, its listed companies represent about $30.5 trillion in market capitalization. Listing on the NYSE affords companies great credibility because they must meet initial listing requirements and also comply annually with maintenance requirements. For example, to remain listed, NYSE companies must keep their price above $1 and their market capitalization (number of shares x price) above $50 million. Furthermore, investors trading on the NYSE benefit from a set of minimum protections. Among several of the requirements that the NYSE has enacted, the following two are especially significant:
Companies must get shareholder approval for any equity incentive plan (for example, stock option plan or restricted stock plan). In the past, companies were allowed to sidestep shareholder approval if an equity incentive plan met certain criteria; this, however, prevented shareholders from knowing how many stock options were available for future grant.
A majority of the members of the board of directors must be independent. However, each company has some discretion over the definition of "independent", which has caused controversy. Furthermore, the compensation committee must be entirely composed of independent directors, and the audit committee must

NASDAQ

The Nasdaq, an electronic exchange, is sometimes called "screen-based" because buyers and sellers are connected only by computers over a telecommunications network. Market makers, also known as dealers, carry their own inventory of stock. They stand ready to buy and sell Nasdaq stocks, and they are required to post their bid and ask prices. Among several high-technology sections, Nasdaq lists the most companies. Although the NYSE has a far greater total market capitalization, Nasdaq has surpassed the NYSE in the number of both listed companies and shares traded. Nasdaq has listing and governance requirements that are similar but slightly less stringent than those of the NYSE. For example, a stock must maintain a price of $1 and the value of the public float (number of traded shares multiplied by stock price) must be at least $1.1 million. If a company does not maintain these requirements, it can be delisted to one of the OTC markets discussed below.

Nigerian stock exchange

Transactions on the floor of the Nigerian stock exchange are done through the automated trading system(ATS). Before it became functional, the call over system was what was in effect. The ATS is a security trading arrangement whereby transactions are achieved through a network of computers. It was established in April 27, 1999 .

Colambia stock exchage

stock exchange organized market for the trading of stocks and bonds . Such markets were originally open to all, but at present only members of the owning association may buy and sell directly. Members , buy and sell for themselves or for others, charging commissions for their services. A stock may be bought or sold only if it is listed on an exchange, and it may not be listed unless it meets certain requirements set by the exchange's board of governors. There are stock exchanges in all important financial centers of the world; the New York Stock Exchange (NYSE, in nearly continuous operation since 1792), which had a trading volume of $7.3 trillion in 1998, is the largest in the world. Tokyo, London, and Frankfurt also have major facilities, and Euronext, an inter-European exchange that merged with the NYSE in 2007 and combines facilities in Amsterdam, Brussels, Paris, and other cities, is also significant. By providing a centralized, ready market for the exchange of securities, stock exchanges greatly facilitate the financing of business through flotation of stocks and bonds. However, speculation in stocks can sometimes accentuate the instability of an economy. The reality of the Great Depression was emphasized by the stock market crash in 1929. The interstate sale of securities and certain stock exchange practices in the United States are regulated by federal laws administered by the Commission . Today, a large percentage of stocks are traded through such over-the-counter organizations as Nasdaq (National Association of Securities Dealers Automatic Quotations) and its European equivalent, Nasdaq Europe (formerly Easdaq). Through these organizations, many securities not listed on a major stock exchange may be traded by dealers using computer and telecommunications technology; in 1994, Nasdaq, on which many computer and other high-technology stocks are traded, surpassed the NYSE in annual share volume.

Organized Stock Exchange

Stock exchange organized market for the trading of stocks and bonds (see bond ; stock). Such markets were originally open to all, but at present only members of the owning association may buy and sell directly. Members, or stock brokers , buy and sell for themselves or for others, charging commissions for their services. A stock may be bought or sold only if it is listed on an exchange, and it may not be listed unless it meets certain requirements set by the exchange's board of governors. There are stock exchanges in all important financial centers of the world; the New York Stock Exchange (NYSE, in nearly continuous operation since 1792), which had a trading volume of $7.3 trillion in 1998, is the largest in the world. Tokyo, London, and Frankfurt also have major facilities, and Euronext, an inter-European exchange that merged with the NYSE in 2007 and combines facilities in Amsterdam, Brussels, Paris, and other cities, is also significant. By providing a centralized, ready market for the exchange of securities, stock exchanges greatly facilitate the financing of business through flotation of stocks and bonds. However, speculation in stocks can sometimes accentuate the instability of an economy. The reality of the Great Depression was emphasized by the stock market crash in 1929. The interstate sale of securities and certain stock exchange practices in the United States are regulated by federal laws administered by the Securities and Exchange Commission . Today, a large percentage of stocks are traded through such over-the-countr organizations as Nasdaq (National Association of Securities Dealers Automatic Quotations) and its European equivalent, Nasdaq Europe (formerly Easdaq). Through these organizations, many securities not listed on a major stock exchange may be traded by dealers using computer and telecommunications technology; in 1994, Nasdaq, on which many computer and other high-technology stocks are traded, surpassed the NYSE in annual share volume. After the deregulation of the British securities market in 1986, the London Stock Exchange saw a decline in business due to a new computerized market similar to Nasdaq.

Start of Stock Exchang

The primary function of an exchange is to provide liquidity; in other words, to give sellers a place to "liquidate" their share holdings. Stocks first become available on an exchange after a company conducts its initial public offering (IPO). In an IPO, a company sells shares to an initial set of public shareholders (the primary market). After the IPO "floats" shares into the hands of public shareholders, these shares can be sold and purchased on an exchange (the secondary market). The exchange tracks the flow of orders for each stock, and this flow of supply and demand sets the price of the stock. Depending on the type of brokerage account you have, you may be able to view this flow of price action. For example, if you see that the "bid price" on a stock is $40, this means somebody is telling the exchange that he or she is willing to buy the stock for $40. At the same time you might see that the "ask price" is $41, which means somebody else is willing to sell the stock for $41. The difference between the two is the bid-ask spread.

Geogarphy of stock exchange

While most people are aware of the stock exchange in their respective country, the concept of one single Stock Exchange is misleading. There are several Stock Exchanges which conduct business daily, and usually interact. If one exchange begins to see a significant shift in buying or selling, it usually causes a ripple effect in most or all of the remaining exchanges. There are Stock Exchanges located in many parts of the word including Africa, South America, Canada (Toronto), the US (both NYC and Philadelphia), Australia, India (Bombay), China (Hong Kong, Shanghai, Shenzhen), Japan (Tokyo), Europe (Frankfurt, Germany; London, England; Madrid, Spain; Milan, Italy; Moscow, Russia; Switzerland and Norway).

Function of Stock Exchange

The Stock Exchanges of the world play multiple roles in the economics and economy. This includes such issues as raising capital for business expansion; moving savings into investment; facilitating the growth of companies by merger agreements and takeovers using the stock market as a means of financing. It also includes distribution of assets and profits of a business; providing for corporate governance through shareholders; allowing smaller investors to purchase and sell stocks; selling government issue bonds to help government fund projects and being a barometer to the economy by providing a record of shares bought or sold and how fast

Non-Professional Consepts Of Stock Exchange.

When we think about the non-professional concept of stock exchange, it refers to a natural person, who is applying in a personal capacity, as neither a principal, officer, partner, employee, nor agent of any business, nor on behalf of any individual. A non-professional is a person who obtains information for their own investment purposes and not for any business purposes.
The Securities Exchange Commission (SEC) in any capacity; The Commodities Futures Trading Commission; Any state securities agency; Any securities exchange or association; Any commodities or futures contract market or association.* Or foreign organizational equivalents.
Furthermore, a non-professional person can be neither (1) an investment advisor (as that term is defined in Section 201(II) of the Investment Advisors Act of 1940, whether or not registered or qualified under that Act); (2) a person employed by a bank, or other organization exempt from registration under federal and/or state securities laws, to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt; or (3) a person engaged as a consultant, independent contractor, software developer, or other person that uses market information for any purpose for profit other than the trading of that person's own personal account.
If you are a non-professional as defined above, please answer "I am not a Professional". If you are not a non-professional as defined above, you should answer "I Am a Professional". Please note that if for any reason your status as a non-professional changes, you are required to notify us.

Brief History Of Stock Exchange.

About the history of Stock Exchange , it is commonly thought that the idea of the stock exchange began in the middle of the 13th century. Venetian bankers had begun to trade government securities. In the late 13th century commodity traders began to gather at a house in Bruges. This meeting became known as the "Bruges Bourse" or Bruges Purse. Commodities trading soon spread to Flanders, Ghent and Amsterdam; while government securities trading spread from Venice to Verona, Genoa, and Flanders in modern day Italy by the 14th century. The Dutch would later join the trend and start companies which allowed shareholders to invest in business ventures and share in the profits and losses. In 1602, at the Amsterdam Stock Exchange, the first shares of the Dutch East India Company were traded. This would be followed by the opening of the London Stock Exchange in 1688.

Stock Exchange As Share Market.

The stock exchange is also known as a share market. Stock exchanges are usually a corporation or other mutual organization providing facilities for stock brokers and traders to buy and sell securities and stocks. Each stock exchange usually has a central facility, mainly for bookkeeping, where transactions and trades are recorded. The stock exchange is the central component to stock markets.

Finance Definition Of Stock Exchange.

A business that is organized to trade stocks, bonds, or options, along with other financial instruments. Stock exchanges have membership requirements that listed companies must meet in order to have their stock traded on the exchange. Brokers who trade stocks that are listed on the exchange also must meet certain requirements and comply with exchange rules. The New York Stock Exchange (NYSE), NASDAQ, and the American Stock Exchange (AMEX) are examples of stock exchanges.

Some More About Stock Exchange.

A stock exchange is essentially a marketplace for stocks and bonds, with stockbrokers earning small commissions on each transaction they make. Stocks that are handled by one or more stock exchanges are called listed stocks. For a corporation's stock to be listed on an exchange, the company must meet certain exchange requirements. Each exchange has its own criteria and standards, but in general a company must show that it has sufficient capital and is in sound financial condition. Once a company is listed, trading in its stock will be suspended if the company's financial condition deteriorates to the point that it no longer meets the exchange's minimum requirements.
When individuals wish to purchase a stock, they place an order with a brokerage house. The Broker gets a quotation or price and sends the order to the firm's representative on the floor of the stock exchange. The representative negotiates the sale and notifies the brokerage house. Transactions happen rapidly, and each one is recorded on a computer system and sent immediately to an electronic ticker that displays stock information on a screen.
New York Stock Exchange transactions may be made in three ways. A cash transaction requires payment and delivery of the stock on the day of purchase. A regular transaction requires payment and delivery of the stock by noon on the third day following a full business day. Around 95 percent of stock is purchased under these terms. Finally, purchase can be made through a seller's option contract, which requires payment and delivery of the stock within any specified time not exceeding 60 days, though seven days is the most common period.

Introduction Of Stock Exchange.

Stock exchanges where the exchange of stocks takes place between the buyers and the sellers. In effect these are the actual stock markets but the term stock market is used in a broader term to signify the overall stock holdings, indices, exchanges and everything else related to stocks.New York Stock Exchange started in 1792 and is located at the epitome of the US financial icon street called the Wall Street. It is undoubtedly one of the largest exchanges in the country. All the companies aspire to be listed here so there shares can be traded on this exchange but before a company can be listed here they have to complete certain set of criteria in terms of financial strength as well as the industry they operate in.