Stock exchange market, Finance Basics

Stock Exchange Market

The Idea and improvement of a Stock Exchange

Stock exchange also identified as stock markets are special "market places" whereas already held bonds and stocks are bought and sold.  In effect they are a financial institution that gives the facilities and regulations required to carry out that transactions quickly and lawfully and conveniently. Stock exchanges developed next to with, and are a necessary part of the free enterprises system. Or we can say no stock exchanges exist in that communist world outside Hong Kong and Macao - that have particular status, and Taiwan that is also claimed via China.They require for this kind of market came about like a conclusion of two main characteristics of Joint Stock Company or like Public Limited Company, shares.

1. First of all, these shares are irredeemable, because one time it has sold them; the company can not at all be compelled with the shareholder to take back its shares and provide back a cash refund, unless and till the company is liquidates and winding up.

2.The second characteristic is that these shares are, however, very transferable and can be bought and resold by other individuals and organizations, freely, the only requirement being the filling and signing of a document known as a share transfer form by the previous shareholder.  The document will then facilitate the updating of the issuing companies shareholders register.

These two characteristics of joint company shares brought about the requirement for an organized and centralized place where organizations and private individuals with money to spare or investors, and satisfy their individual necessitates.  Stock exchanges were the conclusion emerging to give a continuous auction market for securities, along with the laws of demand and supply determining the prices.

Posted Date: 2/1/2013 12:08:01 AM | Location : United States







Related Discussions:- Stock exchange market, Assignment Help, Ask Question on Stock exchange market, Get Answer, Expert's Help, Stock exchange market Discussions

Write discussion on Stock exchange market
Your posts are moderated
Related Questions
how much

The Balance Sheet of International Trade Ltd. as on 31/3/2008 is as under:-                                  Liabilities Amount Assets

The business plan for a new company that has obtained a 5 year lease for operating a local bus service is shown below.  Items marked with an asterisk represent continuous cash flow

Mr. and Mrs. smith are considering the purchase of a house. They can afford to make  a mortgage payment of $750 per month. If the current mortgage interest rate is 9% with monthly

Question 1: Consider a 5-year $10,000 endowment assurance issued to a select life aged 30 under the following bonus schemes:- (a) Simple reversionary bonuses of 5% p.a., 6%i

Explain the Operations of Indian Stock Market. Meaning of Stock Exchange: Stock exchange means an organized market where securities issued by government organizations, compan

Bates, inc. pays a dividend of $1.25 and is currently selling for $36.95. If investors require a 12% return on their investment, what growth rate would Bates Inc. have to provide t

Critize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime

Factors of Capital Structure 1. Availability of securities - This influences the company's employ of debt finance that means such if a company has enough securities, so then

Describe the structure of financial systems with financial markets, securities and financial intermediaries. By a structural point of view a financial system can be considered