The stock market is one of the most popular trading markets around the world, although it is not the market leader in terms of market capitalization.
The stock market is a place where traders can buy or sell stocks, bonds and securities through brokers and traders.
How to trade in the stock market?
In most cases, the sale and purchase of shares in traditional ways where the sale and purchase through the same place. Or through brokerage offices that sell and buy for limited commissions.
Now the spread of electronic trading through the electronic networks of the speed of trading and cost less. Retail trading companies are listing the world's most popular stocks and placing them on their trading platforms.
How companies benefit from listing in stock exchanges?
Most companies seek to be listed in the stock exchanges where the companies enter into a stage of expansion by introducing an unlimited number of partners. Those who wish to enter the company buy what they want from the shares and thus determine the percentage of profits in the distribution of profits after the announcement of the results.
One of the most prominent examples of companies benefiting from the stock market Apple, which became the first company in history, worth more than trillion dollars ( 1000 billion dollars) driven by good results in the first place and second large jumps in the US stock market, which prompted the company to exceed the trillion dollars.
Risks of trading in the stock market
The stock market is the main indicator for measuring the movement of economic activity in a country when the stock rebound as a result of the improvement of the economic conditions in the country.
Conversely, in the event of economic stagnation and risk aversion, investors will abandon equities, especially speculators, who aim for quick profit through rapid speculation as capital withdraws from the stock market and moves to safe haven and gold.
Therefore, before starting to trade, study the economic situation of the country and deal in stocks with economic weight or good investment opportunities, which is expected to have a good future.
The most famous international stock exchanges
- New York Stock Exchange founded in May 1792.
- Nasdaq which was founded in May 1791.
- Japan Exchange Group founded in January 2013.
- The Shanghai Stock Exchange in China in 1990.
- Hong Kong Stock Exchange founded in 1914.
- London Stock Exchange Group in the UK which was founded in 1801.
- The Deutsche Exchange in Germany, founded in 1992.
- Euronext includes a group of leading stocks in the United Kingdom, Belgium, Portugal, France and the Netherlands, which was founded in September 2000.