Different investors who are interested in investing at the offered price of the companies go forward to purchase their shares and become part of the company. Stock exchange serves as a platform for companies to disclose the prices of their stock. The market for trading securities is known as the stock exchange. This is the main channel for investors to trade in stock and for the companies to list their prices.
On the floor the buyers and the sellers come in contact and agree on a particular price of the stock. Here trading is carried in a traditional method of auction. Traders announce their bidding price and the investors interested to buy the security at the offered price signal the trader by raising their arms. These match their bids and ask prices. This enables trade between the trader and the investor. Anybody can be a part of the floor, whether a small investor or huge companies, banks etc. Stock market trading helps the investors to invest their capital in the business which can fetch them a large profit.
New York Stock Exchange was brought up in 1792. It is the largest and most popular stock exchange. All the companies aim in listing their stocks in the New York Stock Exchange. Many requirements have to be fulfilled. An annual fee is charged for the companies to enter in this exchange. New York Stock Exchange provides data of different securities from various companies. Information of the changes in the price is displayed on the board. The stock brokers gather on the floor for conducting transactions. Investors all around look from the balcony, the floor, high above the floor etc. The podium is filled with people. People surround the scroll boards, phones and computers. Zooming of the prices is done
American Stock Exchange also carries trading on the floor. This stock exchange is situated in Manhattan. It is famous for trading in both stocks and options. This exchange is operated under National Association of Security Dealers. NASDAQ offers listing the quotes of all companies in the industry but it is popular for listing technology related companies. Launching of this exchange was done in 1971. For buying the stock it is very important to be ware of different markets. Also different markets specialize in certain type of stocks ; hence investors need to be informed for easy buying. Without stock markets it would be very difficult for the investors to find the right stock they wish to invest in. At the same time the traders would face the difficulty to approach the investors and offer their price.
Monday, July 28, 2008
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