Securities are one of the most attractive investment options. The stock market is called a mechanism that brings together persons who have free investment funds and those who need such funds.
To understand more precisely what the stock market, or the securities market, is, you need to understand that it is part of a huge system called the financial market. The object of purchase and sale transactions on the stock market is exclusively securities.
The most important feature of the stock market is that securities can be traded on it completely unhindered. This means that an investor of any production, who has done this by buying shares, for example, has the right to sell these shares. However, after such a resale, the company itself, which issued the shares, will continue to function. The production process of the enterprise will not be affected in any way by the fact of the resale of securities. This feature of the stock market gives the investor the opportunity to choose the period for which he is ready to invest in a particular business.
In the structure of the securities market, the capital market and the money market are distinguished separately. On the first one, either securities with a maturity of more than one year, or perpetual are traded. In the money market, the subject of transactions are securities with a short term of validity - up to a year.
According to its organization, the stock market is divided into primary and secondary. If only newly issued securities are placed on the primary market, then on the secondary market there is a resale of securities already purchased by one or more investors. Only legal entities, with the exception of promissory notes, are usually entitled to issue, or issue, securities.
There are also two sub-structures already in the secondary market. The first of them is the exchange market, which is the circulation of securities within the exchange. The second is the over-the-counter market, which also includes the circulation of securities outside exchanges.
In order for a security to be admitted to exchange trading, its compliance with the requirements established by the exchange is required. The process of adding a newly issued security to the quotation list is called listing. The quotation list itself is a list of listed securities. However, once passed this procedure, securities may subsequently for some reason cease to meet the established criteria, and in this case, the securities will again be struck off the quotation list, or will be subject to the delisting procedure.
To become a participant in the stock market and successfully engage in investments, you do not need a specialized education or large amounts of free money. First of all, it is necessary to study the existing experience of the trading business, and then you can gradually act. However, trading in the stock market is a business with a high level of risk, and a newly minted stock market participant should understand that any of his decisions is made solely at his own peril and risk.
