The Stock Exchange for dummies

General principles

Webmestre — 2007-01-30T14:03:32Z

To be able to take part in a stock exchange market, it is absolutely necessary to use an intermediary. Only some business called “Service and Investments provider” are entitled to place your orders on the Stock Exchange.
The routing of orders is done according to the following principle:
Phase 1 : Specification of orders
The investor is the person who decides to buy or to sell stocks. In order to do that, he places an order with an intermediary. This order contains information (...) - Generalities about stocks

ECN (|Electronic Communication Networks|)

Webmestre — 2007-01-30T13:59:20Z

The two institutions described previously function according to a timetable of opening and closing, outside the schedule, the sale and the purchase of stocks are impossible. To overcome this problem, a parallel network allowing the exchange of stocks 24 hours a day was created in 1997. - Generalities about stocks

NASDAQ

Webmestre — 2007-01-30T13:56:17Z

History
In the 20th century, the industrial revolution was accompanied by a true gusto for the stock exchange markets. As the transactions carried out with the NYSE, were not sufficient any more, a parallel market not quoted on the Stock Exchange, i.e. not controlled, was created.
On this market, people exchanged stocks private treaty, i.e. according to the Say's Law of Markets. At the end of the day, various quotations of each stock were consigned on “pink sheets”. Early in the (...) - Generalities about stocks

|New York Stock Exchange|, NYSE

Webmestre — 2007-01-30T13:47:55Z

History
This place was born from the signature of a charter between some negotiators in 1974. These people agreed to sell portions of companies between them and to be paid for the transactions which they would carry out for the account of other people. This grouping set up in “40 Wall Street” in the town center of New York. Its size increasing, the NYSE moved to the building everybody knows.
The NYSE quotes only the companies of sufficient scale, thus neglecting companies of (...) - Generalities about stocks

|Main structures |of the Stock Market

Webmestre — 2007-01-30T12:54:24Z

The first issue to address is what constitutes a stock. A Stock is a title deed representing a fraction of the capital of a company and giving to its carrier voting rights at the assemblies and the right to information. These stocks are exchanged on the different world stock exchange places. There are various institutions of national or international Stock Market in each country.
However, some common structures will be found in countries all over the world. Indeed, on one side, we have a (...) - Generalities about stocks