Sunday, May 18, 2008

INTRODUCTION TO STOCK MARKETS




A stock market is a market for the trading of company stock, and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately.Select a broker or investment advisor who understands your financial objectives. Interview several to compare experience, education and professional background. The stock market is one of the most important resources for companies to gain money. This helps businesses to go public, or raise extra money for expansion. The liquidity that an exchange helps affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks.Exchanges also act as the clearinghouse for every transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction.

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