The stock exchange

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Categoria:	Inglese
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Data:	14.06.2007
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main stock exchange
 New York
 London
 Tokio
 Frankfurt
share is the part in which is divided the capital and is known as stock and the owner are called stockholder or shareholder
REASON TO BUY A SHARE
 you could make a profit if you sell them
 after their value has risen
 you could earn a dividend from the company's profits
RISKS TO HAVE A SHARE
 you could lose if their value goes down
 you could receive nothing if the company has not profit
BOND
is a document issued by a government or company when borrowing money from public, the owner are called bondholder and with it the older obtain repayment of loan, plus a fixed rate of interest
BROKER
is an intermediary who buys and sells shares on behalf of the investor
types
bulls(believe that the value of the shares will rise
bears(expect that the prices of shares will fall

27TH OCTOBER 1986
the london stock exchange change because the old system didn't allow london to complete successfully as an international financial market place
changes
 all member companies on the stock exchange can now buy from or sell to their client
 fixed commission were abolished and it means that the big buyers shares an negotiate very long change
 companies outside the stock exchange could become members of it
 seaq (stock exchange automated quotation) was introduce and because of this computerised system dealers buy and sell directly from their offices

was founded in1792, it is based in wall street and is opened in 1922
WORK AT NYSE
PLACE ORDER
an investor place an order to buy and sell shares
CHECKING OF COSTUMER'S ACCOUNT
a nyse member brokerage firms checks the costumer's account
TRANSMISSION OF THE ORDER
the firm's clerk receives eh order by phone, by wire or manually
TRADING
a specialist exposes the order in the agency auction market and makes trade, trying to find the best price for the customer and broker takes the order to the trading post where the stock is traded
ISSUING OF TRANSACTION REPORT
a transaction report is sent to the originating brokerage firms and report are also sent to consolidated tape displays world wide
POST TRADE PROCESSING
a post trade processing takes pace almost immediately
CONFIRMATION OF THE PROCESS
the investors receive a trade confirmation from this firms: if shares were bought, he submits payment, while if shares were sold, the investor's account is credited with the corresponding sum
Commercial Theory 4 ( The Stock Exchange