About Stock Market

Stock market is a kind of economic network that facilitates economic transactions for the trading of company stocks as well as derivatives at an agreed price. Now it is the most important resource for the companies to raise their capital significantly. Stock market has the history of its own. In the 12 th century, the concept of the stock market came to the people of French at first. In the beginning of the 14 th century the bankers of erona, !isa, Florence and "enoa began the business of trading in government securities. #utch $ast India %ompany was the pioneer of the stock market. It was the first company in the world who issued the first stocks and bonds on &msterdam 'tock $(change. "enerally, the stocks are listed and traded within the stock e(changes. 'tock e(change is the entities of mutual organi)ation that are speciali)ed in the trade of bringing the buyers and sellers of the organi)ations to the listed securities and stocks together. *here are two types of stock e(changes around the world. First one is the +open outcry, where the traders have to enter in a verbal bid and offer simultaneously. 'econd one is the +virtual e(change, where the traders are electronically getting connected to a computer network. *raders mainly work with auction market model where a buyer has to bid an e(act price for a stock. If the price matches with the seller,s price only then the stock can be sold. In the case of multiple buyers the stock can be sold on the basis of first come first served. *he main function of a stock e(change is to support the e(change of securities among the buyers and sellers of a stock market. *he participants of the stock market can be range from a small investor to a giant hedge fund trader. *here is no problem to -oin any stock market from any corner of the world. Few decades ago the situation was not like this. *hen the buyers and sellers worked as the individual investors of some particular corporations. .ith the passage of time the stock market becomes institutionali)ed and the buyers and sellers become more organi)ed. *hese organi)ed investors have made some important changes in the operation of the stock market. *hough the corporate supremacy adversely affected by the organi)ed investors, it has made the business smoother than before. Stock market not only e(pands the business but also accelerate the global finance significantly. *his will be further enhanced with passage of time.
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