“Never lose money”

“Never lose money”
Stock Exchange

“Stock exchange is a market for the purchase and sale of issued stock and shares"

A stock exchange is a highly organized market where securities are purchased and sold. Dealings in securities are made in a systematic manner for investment and speculation. Securities refer to shares, debentures and government bonds. The board of directors consisting of certain members who may be brokers, floor-traders and specialists manages the stock exchange. The management is responsible for manages the stock settlement of disputes among the members, admission of new members and expulsion of members on account of misconduct.

Historical evidences reveal that is the 11 century Muslim and Jewish Merchants in Cairo had a trader association and their own methods of credit and payment. This is believed to be beginning of stock market. In the 12 century, France courtiers de change managed and regulated the debts of agricultural communities on behalf of the banks. Since these men traded with debts, they were also known as “brokers”. Venetian bankers traded in government securities in the 13 century. In the 14 century, the Dutch started joint stock companies, which encouraged the shareholders to invest in business ventures. In 1602, Dutch East India Company established Stock Exchange and it was company to issue stocks and bonds. The Dutch pioneered in “option trading”, ‘short-selling”, “debt-equity swaps” and in other speculative financial instruments. There are now stock markets in virtually every developed and developing economy with the world largest markets being in United States, United Kingdom, Japan, India, Pakistan, China, Canada, Germany, France, South Korea and Netherlands.

“Stock exchanges are market places where securities that have been listed thereon may be bought and sold for either investment or speculation”

Seerat Francis

Popular Posts