What is a stock market?
The stock market or exchange is a market whose purpose is to allow the trading of company securities. It exists in different forms. However, to have access to it, you must meet certain criteria and follow the regulations in force. Let's zoom in on what the stock market is to know a little more about it.
The stock market, to buy and sell what?
A market is used to buy and sell. In the case of the stock exchange, it allows to sell or buy shares in companies. The companies for their part use it to raise funds or to put new shares on the market. To be able to do these different operations, some criteria need to be respected. These conditions are important.
Beyond those that govern the integration to the stock market, there are those that allow to trade shares on the market. We talk about the criteria of quotation in the stock exchange. These are some limits according to which the negotiations should intervene or not. These are data according to which the price of a share can increase or decrease.
Other objectives of the stock exchange
In spite of the fact that shares have to be bought and sold, the stock exchange has the mission to :
- Find financing for companies ;
- Produce wealth for shareholders;
- Support the economy and the gross domestic product.
The role it plays is important. It allows to ensure the smooth running of companies in crises. It is a way to increase the value of a company. From a global point of view, putting your money in the stock market is both an economic and social action. You will contribute to create more wealth and improve the standard of living of people. Because of this information, you have enough to take a stock market action to participate in the development of your community.