The stock market, called the International Stock Exchange, is a market that issues, collects and trades stocks, bonds, and other securities.
They provide facilities for international companies, and provide the support and innovation needed to increase capital for investors all over the world.
The stock exchange is an activity that contains the presence of exchanges of securities in a region or a country, and also depends on the presence of value or price of shares traded.
Global stock indexes
The value of a country’s stock market as a part of the global financial indicators is measured by the weighted average method of the stocks selected.
These global indicators help traders and analysts by describing the market and comparing the rest of the investments, and most local markets adhere to their approach.
How to work on the stock exchange
The stock exchange is divided into two types: main markets that sell new papers through subscription application, and secondary markets that complete the following operations for the same handling.
The secondary market is the primary desire of individual investors and institutional entities.
Mostly, the stock market works to achieve trading in stock companies through the implementation of a number of exchanges between sellers and buyers.
It lists the shares traded within the trading deals, which can be done electronically, as they contain the purchase and sale of shares and securities
The rise or fall of shares is one of the advantages of buying a group of them in most sectors, i.e. diversification, in order to obtain optimal funds and profits.
That is what leads to the rise in the share price, while the sale of shares takes place when the price drops and buyers request that it be acquired upon reaching a specific point in the price.
Conditions for dealing in global markets
The success of the investment process in the global market “stock” depends on its distinction with several conditions, namely:
Whereas, whenever the Stock Exchange includes several companies, this helps in increasing the total value of shares traded.
This leads to help investors diversify trading and not focus on a specific direction of securities.
It is the ability to obtain funds through securities, so when the market size becomes large, the liquidity ratio is high in the market.
It is the market’s ability to cope with price fluctuations resulting from unreasonable expectations, and influenced by the common sayings on stock prices.
Those reasons leading to high and low, and leading to the prices of the papers from their actual value,
thus achieving the nature of the performance of the issuing bodies.
It is the ability of the market to provide good information on all transactions involved in buying and selling of traders, which leads to the cessation of information manipulation.
The benefit of investing in the stock market
Take advantage of the profits of institutions and the progress of the economy
The growth of the economy is a contributor to the production of income that helps to strengthen the demand for products, which leads to an increase in the value of cash income in companies.
Ease of purchase
A trader can easily buy stocks and stocks by referring to the financial analyst or broker online.
Ease of sale
The trader can, when some funds are needed, sell his shares, but it must be taken into account for the emergence of risk resulting from price fluctuations.
Easy access to funds
– Buying securities at a low price, selling them at a high price, and buying shares of companies that offered moderate financial profits.