Stock exchange market, Finance Basics

Assignment Help:

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.


Related Discussions:- Stock exchange market

Cost of financial distress, Assume a levered firm has a current value of $6...

Assume a levered firm has a current value of $650,000,000. The firm currently has $259,258,527.20 in debt. Without debt, firm value (i.e. VU) would be $580,000,000. Ignore the cost

Calculate the profit and segment of the organization, Food and Beverages ...

Food and Beverages Rooms, Restaurants and Other Services Other Income Total $ $ $ Sale

Financial markets, what are financial markets. why do they exist

what are financial markets. why do they exist

Effective reach and effective frequency-insurance , Before purchasing insur...

Before purchasing insurance we have to go through different factors. Among different important factors there are two most crucial aspects we should consider before buying insurance

Illustrate in brief about the investment process, Illustrate in brief abou...

Illustrate in brief about the Investment  Process A  typical  investment  decision  undergoes  a  five  step  procedure which, in turn, forms the foundation of investment pr

Financial planning processes, explain the financial planning process in a p...

explain the financial planning process in a private limited company

Evaluate the companys financing strategy, For any company that is quoted on...

For any company that is quoted on the London Stock Market, you are required to write a report to existing shareholders on any TWO of the following issues. Each answer carries equal

Managing financial resources, Two friends, Alan & Tim just graduated from t...

Two friends, Alan & Tim just graduated from the college. They plan to start their own business, of selling health foods for office workers. They have identified a commercial comple

Fiscal function, should be provied on a centralised or a decentralised basi...

should be provied on a centralised or a decentralised basic?

Yield to Maturity, A bondholder buys a bond maturing in two years for Rs. 1...

A bondholder buys a bond maturing in two years for Rs. 120 and earns Rs.15 per annum as interest. His YTM is ______ %.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd