The stock market is ... The Russian stock market. American Stock Market

The history of the stock market emerges far into the past. Even in the 13th and 14th centuries, bill markets and periodic fairs were active. They are a kind of prototype of the modern securities market. The first transactions with securities took place in the 16th century, when the first exchanges in Lyon and Antwerp began to appear. The stock exchange and the stock market in the modern sense were established in the late 16th century, in parallel with the emergence of joint-stock companies.

An excursion into the history and familiarity with the concept of the stock market

The oldest is the stock exchange in Amsterdam, which began operating in 1611. It was she who became the first place where the marginal transactions and the urgent REPO and DEPO deals were practiced. The culmination in the development of the international stock market was the opening of the stock exchange in New York. It was for the first time that the first investment mechanisms were developed and put into practice. It became the basis for the formation of multibillion-dollar financial empires, in particular Rockefeller.

The stock market is a constituent part of the capital market that can be regulated, providing the ability to trade securities not only on the exchange market, but also on the over-the-counter market. Consequently, the concepts of "stock market" and "securities market" by and large are synonymous. The international stock market is a set of markets of all countries that are integrated into a single whole and allow financial manipulation of securities. It can be concluded that the international stock market is nothing but a component of the global capital market, which in tandem with the money market is, in fact, a global financial system.

Who takes part in the life of the market and what transactions are conducted on it

The world stock market belongs to the category of supranational structures. It integrates the stock markets of all world states. At a time when in the domestic markets, either individuals or legal entities act as participants in the international market, as the participants in the trade themselves are represented by the states themselves. Access to the platform is available to virtually all participants of the world economy, and the location of their location does not affect this fact, which automatically makes the market both global and universal.

The stock market is, to some extent, a tandem of credit and financial institutions. This includes transnational companies, international stock exchanges, brokerage houses, dealers, state agencies, and financial institutions. In the life of the market, such institutions as banks, insurance agencies, state financial services that can influence the market movement take part. All operations performed within the market can be differentiated into two categories. Commercial manipulation is the mutual settlement between the parties for export and import transactions. Financial manipulation is the flow of capital between the most diverse spheres of the economy.

Division of the market: primary and secondary market

The stock market of securities can be called an institution or mechanism that provides the basis for interaction between buyers who are demanders and sellers acting as providers of values. The stock market can be divided into primary and secondary. Each subtype of the institute performs a clear list of tasks.

Primary market

The primary market is the market for stocks and bonds, short-term government bonds and state loan bonds, federal loans. The concept includes the bond market of a currency loan and treasury obligations, a gold certificate with financial instruments. According to the legislation, the primary market is defined as the relationship formed when issuing in the aspect of investment securities or in the implementation of civil and legal transactions between persons who have assumed the full range of obligations under securities and investors, professional participants in the financial industry or their representatives.

The primary market can be called the market of the first or repeated issues of securities, within the framework of which their primary distribution between investors is realized. The information on securities, with prospectuses of issue, registration and control by state bodies inclusive, is completely open to investors, which allows us to make a rational and deliberate choice of the latter.

The primary market is presented in two formats. This private placement, with its inherent sale of securities to a strictly limited number of investors, defined in advance (without a public offer), and a public offering, which is carried out by publishing a public announcement (includes the sale of shares to an unlimited number of investors).

Secondary market

The secondary financial and stock market includes stock exchanges and stock departments of commodity exchanges, intended for pre-issued shares and financial instruments. The term implies relations that are formed when the securities previously issued in the primary market are rotated. At the heart of the secondary market are operations that support the redistribution of the spheres of influence of foreign investment, with certain speculative operations inclusive.

The secondary market of securities is divided into an organized (or stock market) market and on an unorganized or over-the-counter (street) market . The secondary stock market provides a stable structured restructuring of the economy in order to improve its efficiency. It is mandatory for the existence of the securities market, as well as the primary one. A characteristic feature of the Institute is liquidity, which is an aid to the realization of successful trade and for the ability to absorb a large number of securities in a short time. At the same time, the exchange rate fluctuations remain at an insignificant level, and the implementation costs are minimal. The mechanism of trade in the secondary market ensures the stability of the market itself and limits speculation.

Why you need a stock market

The stock market is a universal financial structure that influences many areas of activity. The Institute influences business, as it is inherently the easiest way to obtain finance for the development and prosperity of a young corporation. When a start-up company sells shares, a share of the property, it receives the capital that does not need to be repaid and which does not need to pay interest, as in the case of obtaining a loan from the bank. The shares are converted into money not only with great speed, but also with great dividends.

Stock prices, which are largely formed by the participants in the stock market, have a direct impact on the state of the economy and act as an indicator of social sentiment. The economy in which the stock market develops is considered to be developing, and the country is strong and prosperous. Trading in the stock market opens chic prospects for ordinary people. Bidders who do not have a lot of capital can become co-owners of shares of major global concerns and in the future to receive stable profits from them.

The domestic stock market

Until recently, the Russian stock market, during the last four years, showed active growth rates, which emphasized its dominant role in the development of the state's economy. At the first stages of its development, the market played out the role of distribution of property within the country, today its main purpose is to attract foreign capital to the Russian economy. At the moment, the capitalization of the domestic stock market is equal to 498 billion dollars, which is 80 percent of the country's GDP.

Experts predicted that, despite the crisis, in 2015 the market capitalization will be increased by 2.5-3 billion. In fact, the situation only worsened, and the whole stock market today is cheaper than the shares of Apple. Statistical analyzes clearly show that the development potential that the Russian stock market has is not yet exhausted. Prosperity of the Institute is a prerequisite for ensuring a sufficiently high level of competitiveness in the battle for the material resources of global investors on the international stock market. Not only private individuals are interested in the development of the market, but also enterprises that want to attract investments through bonded loans.

Domestic Stock Market 2015

The Russian stock market has serious problems related to problems in the legislation, with a low level of development of investor activity, with companies' inappreciation and a lack of corporate culture. At the same time, according to the estimates of the world experts, the stock exchange of Russia at present belongs to the category of the worst in the world, despite the good potential. This fact is evidenced by the dollar index of the RTS, which since early 2014 has dropped by more than 50 percent.

Worse things are only in the market of Ukraine, Portugal and Greece. The ruble is systematically weakening against the dollar. The last figures after the auctions were fixed below the level of 60 rubles, which is the largest intraday drop since 1998. They pushed the fall in the currency of the statement of the Central Bank, which announced the forecast for the next year, based on the price of oil at $ 60 per barrel, which is absolutely untrue. Investors are losing interest in the Russian market, which is reflected in the state of the economy.

The American Stock Market

In contrast to the situation in which the Russian stock market is today, its American counterpart is considered the most liquid in the world. Within its limits, the securities of the world's largest companies are traded. This is not only shares of corporations and securities of foreign organizations, but also depository receipts, exchange funds, many other tools. American Stock Exchange in New York serves as a platform for concluding transactions with second-rate securities. At the first stages of its development, the exchange was presented in the open-air area on Wall Street, where the deals were concluded. Only since 1921 the sales area has moved into a covered building

To get an opportunity to invest in the American stock market, you need to open an account with one of the brokers, which is focused on providing services to traders from Russia. Each broker has specialists who will tell newcomers what to do and how. The rating of brokers of the stock market indicates that it is preferable to cooperate with such companies as Finam and Capital Management, Insta Trade and United Traders, INVEST. These are brokers, which, according to a number of criteria, have been identified by the world's best agencies as the most reliable ones.

Features of trading on the American Stock Exchange

The Russian stock market differs radically from the American one, which determines the specifics of trading at the latter. To begin with, transactions within the platform are concluded between bidders. Losses on the spread are not necessary. Market participants can not only accept or reject prices, they can offer their own. Within the exchange, each trader gets access to information that includes not only a price chart. The trader can estimate the volume of transactions, the depth of the market, the ribbon of prints and "imbalance".

The stock exchange offers a huge range of trading instruments, which number at least 6.5 thousand, which automatically provides chic opportunities for competent risk diversification. Trading on the stock exchange can be carried out daily, as the number of shares is very large, and it is quite easy to find the optimal ratio of risks and profits. In order to start active trading in shares, you need a deposit of at least a thousand dollars. Companies offering to start with 500 dollars, offer very unfavorable terms of trade. For a trading platform it is necessary to pay separately, but the profit from trade with interest covers all expenses.

The capitalization of the US market is equal to many trillions of dollars, which makes it attractive to investors from around the world. And within the market there is a huge amount of both undervalued stocks that will make it possible to make good money, as well as a large number of overvalued, opening no less broad prospects. Experts recommend developing long-term investment projects, rather than counting on short-term profits and quick returns.