In this century, everybody is fascinated with the stock market or stock exchange and trading on it, but before you try to trading or investment in the stock market, I please you to have a look at this definition of the stock market.
It is known as market the social institution that arises when a link is initiated between bidders (known as sellers) and eventual plaintiffs (i.e., buyers), which interact to exchange specific, transactions or agreements.
A value, on the other hand, is something that has an estimate. The term, in an economic or financial sense, is used as a synonym for title or action (to mention, in this context, the rights as an owner that someone treasures to a specific society).
Based on these definitions, the notion of the market or stock exchange can be presented as a phrase that describes the capital market that serves as a framework to establish negotiations linked to income, both fixed and variable, through purchase operations. sale focused on any kind of negotiable value.
Both the bidders and the plaintiffs negotiate the securities (which can be from shares or securities to obligations, among others) after accessing reliable information on the statements of the companies. The operation of the stock market allows channeling savings and investment.
Securities issuers obtain financial resources from the public offering, while those who buy these securities can make a profit either by reselling the shares or by collecting dividends (an amount that is paid in proportion to the titles held with the profits generated by the company).
It should be noted that the stock market employs various procedures and systems that guarantee its transparency. In this way, it is assumed that there will be no one who can use their power to distort the price of the securities. It is essential, therefore, that the information circulates freely and is truthful.
The Tokyo stock market is the second most important in the world, and the largest in Asia, and is dedicated exclusively to trading the shares and securities, both convertible and those that entitle to acquire or subscribe.
To conduct its negotiations, it is based on a ” computer-assisted order management and execution system,” known by the acronym CORES. More than 2000 companies from all over the world are listed on it, highlighting undoubtedly the technological and automobile.
Among them are the leaders of the manufacture of Honda and Toyota vehicles, the powerful and multifaceted Pioneer and Sony, the manufacturers of electronic components Kyocera, TDK, and Fanuc, the leader in digital imaging Canon and security specialists Secom.
In each country, there is an entity that is dedicated to supervising the activities of the stock market, as is the case of Spain, for example, and it’s National Securities Market Commission, which has been in force since 1988.
In all cases, it has as main objective to ensure the legitimacy of transactions and protect investors. It should be mentioned that the amount of data that must be analyzed to carry out its activities is freely accessible to citizens.
Speaking specifically of the English NYSE, this body carries out an intense international work, which mainly consists of participating in the societies that bring together those who regulate and supervise the securities, such as the International Organization of Securities Commissions, and the groups that they cover various sectors, such as insurance and banking services, both nationally, continentally and globally.
On the other hand, their powers also reach the advice and the provision of services to the national authorities to improve their collaboration with the bodies of the European Union; Through training programs, it ensures an updated look and encourages the different entities of the securities markets to modernize, thus promoting their growth.