The Stock Market Of Money Markets Essay

Investing money is a major means of generating extra cash that people often participate in. A stock market is a place where investors trade certificates of partial ownership in businesses for a set price. “Through these transactions, companies can raise the initial capital necessary for various aspects of operation, and those who buy the certificates become entitled to a portion of the business' assets and earnings (Kelsey).”

In the beginning, there was no real stock market. However stock exchanges did take place in smaller groups and corporations. This all took place during the 1700's where stocks were already around for a long time before that but it wasn't really popular in the United States. Stocks originally started as auctions where traders called out names of companies and the shares available. There was a auction that took place and the shares went to the highest bidders.

When an investor purchases stock, they become a shareholder which means they have ownership of “part" of the company. If the company 's profits rise, you are entitled to share in those profits. This also works the other way around. Should an investor sell their stock when the current price is lower than what they paid for it, then they would make a loss.

In order to succeed in any business, it is extremely important to understand the stock market. In this assignment we were asked to follow the stock market continuously for four months and understand the market. The stock market is a global marketplace, where goods and services are traded in the form of equities.

Rookie stock market investors are those who only possess a relatively rudimentary knowledge and experience of the investing sphere. Most of these individuals usually commence by sticking to a 'buy and hold ' trading strategy. As a beginner, your general experience in investment trading is very limited. This, for the most part, confines you to making no more than a couple of trades perhaps on a monthly basis from a cash account. However, this does not necessary signify that you have not placed high expectations on your stock market trading activities. You most likely are very interested in expanding your knowledge as well as investment experience in order to realize the objectives you may have set. This is all nice and good.

According to Alfaro, Chanda, Kalemli-Ozcan, & Sayek (2004) stock markets play a vital role as they allow investors to buy and sell shares in publicly traded companies. They are one of the most vital areas of a market economy as they provide companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company 's future performance.

The market makers play an important role in the trading system as catalysts, particularly for enhancing stock liquidity and, therefore, for promoting long-term growth in the market. In detail, they played two roles as below:

Shares of the various East India companies were issued on paper, which allowed investors to sell to other investors. However, in order to be able to buy stocks, an

Finance, understanding how it affects the smallest business to the largest organization, is the origin to financial success in businesses. According to Gitman (2006), finance is the art and science of managing money. Virtually every individual business and large organization, Be the organization for profit or non-profit, depends on the rates at which these entities earn, or raise money, and the rate at which they spend or invest these earned monies. Understanding these financial processes will enable the financial manager, or even the non-financial managers to more effectively interact with financial personnel, processes, and procedures.

In Singapore, the ability to trade stocks and shares has become easily accessible due to online trading. Real-time information on stock prices is

Back home on the Blackfeet reservation in East Glacier, Montana, the wind would be howling

Every weekday from the hours of 10am to 4pm $169 billion dollars on average trades hands from one party to another. It’s the New York Stock Exchange and has been trading stocks since 1817. The stock market has a definite impact on our lives (just ask those who lived during The Great Depression.) It is an institution that has made people unfathomably wealthy, along with impossibly poor. Today the New York Stock Exchange has over 2,300 different companies trading stock valued at just over 16 trillion dollars.

Over the past semester in Economics I have invested in and monitored the stock market. I learned how investing in certain companies can be risky and proper research about the companies are detrimental before buying stocks. Three stocks that have influenced most of my financial earnings and losses include Twitter, Amazon, and Pepsi.

The security markets provide a link between corporations and investors (Titman et al, 2011). Corporations issue securities to investors that pay cash in exchange for the securities. The corporation invests in return-generating assets which generates cash flow from operations. The organization reinvests cash in the corporation, distributes cash back to the investors, securities are then traded among investors in the secondary market, and the investors and corporations pay taxes to the government (Titman et al, 2011).

The London Stock Exchange lists the FTSE 100 which is a share index of stocks of 100 companies showing the highest market capitalisation. This will be completed by discussing the movement of the company’s share during the time period. The companies will also be compared to the movement of the shares against each other, against FTSE 100 and against its industry sector. The records and comparisons will be all in context of Stock Market Efficiency. Stock Market allows a company to be aware of the trade with shares and finance which is at an agreeable price. Two of the companies chosen to