The stock market is ... The Russian stock market. American Stock Market

The history of the stock market goesfar in the past. Already in the 13-14 centuries, bill markets and periodic fairs were actively working. They act as a prototype of the modern stock market. The first operations with securities took place in the 16th century, it was then that the first exchanges in Lyon and Antwerp began to appear. The stock exchange and the stock market in the modern sense were established at the end of the 16th century, in parallel with the emergence of joint-stock companies.

A tour of history and acquaintance with the concept of the stock market

The oldest is the stock exchange inAmsterdam, which began work in 1611. It was she who became the first place where margin operations and urgent REPO and DEPO transactions were practiced. The culmination of the development of the international stock market was the opening of the stock exchange in New York. It was there that the first in the history investment mechanisms were developed and implemented for the first time. It became the basis for the formation of multi-billion dollar financial empires, in particular Rockefeller.

The stock market is an integral part of the market.capital, amenable to regulation, providing the ability to trade securities not only on the stock exchange market, but also on the over-the-counter market. Consequently, the concepts of “stock market” and “securities market” are by and large synonymous. The international stock market is a set of markets of all countries that are integrated into a single whole and allow financial manipulation of securities. It can be concluded that the international stock market is nothing but an integral part of the global capital market, which in tandem with the money market is, in fact, a global financial system.

Who takes part in the life of the market and what operations are carried out on it

The global stock market is categorizedsupranational structures. It integrates the stock markets of all world states. At a time when, on the domestic markets, participants are either individuals or legal entities, the states themselves are represented on the international platform as participants in trade. Practically all participants in the world economy have access to the platform, and the location of their location does not affect this fact, which automatically makes the market both global and universal.

The stock market is in some way a tandem.financial institutions. These include multinational companies, international stock exchanges, brokerage houses, dealers, government agencies, and credit and financial institutions. Institutions such as banks, insurance agencies, and public financial services that can influence market movement are also involved in the market. All operations performed within the market can be differentiated into two categories. Commercial manipulations are a mutual settlement between the parties for export and import operations. Financial manipulation is a flow of capital between the most diverse areas of the economy.

Market Division: Primary and Secondary Market

Stock market can be calledan institution or mechanism that provides the basis for interaction between buyers, who are the bearers of demand, and sellers acting as value providers. The stock market can be divided into primary and secondary. Each subtype of the institute performs a clear list of tasks.

Primary market

Primary market is a stock and bond market,short-term bonds of the state type and bonds of the state loan, federal loan. The concept includes the market for foreign currency bonds and treasury bonds, a gold certificate with financial instruments. According to the law, the primary market is defined as the relationship formed during the issue in terms of investment securities or in the implementation of civil and legal transactions between persons who have assumed the full range of obligations under the securities, and investors, professional participants of the financial industry or their representatives.

Primary market can be called first market eitherre-issue of securities, in which their primary distribution among investors. Information on securities, with prospectuses of emission, registration and control by state bodies inclusively, is completely open for investors, which allows making a rational and deliberate choice of the latter.

The primary market is presented in two formats. This is a private placement, with a strictly limited number of investors, previously determined (without a public offer), and a public offer, which is carried out by selling a public announcement (including selling shares to an unlimited number of investors).

Secondary market

Secondary financial and stock market includesStock exchanges and stock departments of commodity exchanges, intended for pre-issued shares and financial instruments. The concept implies relationships that are formed during the rotation of pre-emitted within the primary securities market. The secondary market is based on operations that reinforce the redistribution of the areas of influence of foreign investment, with certain speculative operations inclusive.

Secondary securities market is divided intoorganized (or exchange) market and unorganized or over-the-counter (street). The secondary stock market of shares provides a stable structured restructuring of the economy in order to increase its efficiency. It is mandatory for the existence of the securities market, as well as the primary one. A characteristic feature of the institute is liquidity, which becomes an aid for the realization of successful trading and the ability to absorb a large number of securities in a short time. At the same time, fluctuations in rates remain at an insignificant level, and the costs of implementation are minimal. The mechanism of trading in the secondary market ensures the stability of the market itself and limits speculation.

Why do we need a stock market

The stock market is a universal financialstructure that affects many areas of activity. The institute influences business, as it is in its essence the easiest way to get finance for the development and prosperity of a young corporation. When a start-up company sells shares, a share of ownership, it gets into the hands of capital, which is not necessary to return and for which you do not need to pay interest, as is the case with a loan from a bank. Shares are converted into money not only at high speed, but also with large dividends.

Stock prices, which to a greater extent form themselvesstock market participants have a direct impact on the state of the economy and act as an indicator of social attitudes. An economy in which the stock market develops is considered to be developing, and the country is strong and prosperous. Trading in the stock market opens up great prospects for ordinary people. Bidders who do not have large capital may become co-owners of shares of large world concerns and in the future receive a stable profit from them.

Domestic stock market

Russian stock market until recently, inOver the past four years, it has shown an active growth rate, which emphasized its dominant role in the development of the state’s economy. In the first stages of its development, the market played the role of the distribution of property within the country, but today its main purpose is to attract foreign capital into the Russian economy. At the moment, the capitalization of the domestic stock market is 498 billion dollars, which is 80 percent of the country's GDP.

Experts predicted that, despite the crisis,in 2015, the market capitalization will be increased by 2.5-3 billion. In fact, the situation has only worsened, and the entire stock market today is cheaper than Apple shares. Statistical analyzes clearly show that the development potential that the Russian stock market has is not yet exhausted. The prosperity of the institution is a prerequisite for ensuring a sufficiently high level of competitiveness in the battle for the material resources of global investors in the international stock market. In the development of the market are interested not only individuals, but also companies that wish to attract investment through bond loans.

Domestic stock market in 2015

The Russian stock market has serious problemsassociated with problems in legislation, with a low level of development of investor activities, with the invaluable companies and the lack of corporate culture. At the same time, according to world experts, the Russian stock exchange is currently ranked among the worst in the world, despite its good potential. This fact is evidenced by the dollar index RTS, which since the beginning of 2014 has fallen by more than 50 percent.

Worse things are only on the Ukrainian market,Portugal and Greece. The ruble is systematically weakening against the dollar. The latest indicators after the auction were fixed below the mark of 60 rubles, which is the largest intraday drop since 1998. They pushed the decline in the currency of the Central Bank’s statement, which announced the forecast for the next year, based on the price of oil at $ 60 per barrel, which is absolutely not true. Investors are losing interest in the Russian market, which is reflected in the state of the economy.

Stock market america

In contrast to the situation in whichToday, the Russian stock market, its American counterpart, is considered the most liquid in the world. Within its borders are trading securities of the largest world companies. These are not only corporate shares and securities of foreign organizations, but also depositary receipts, exchange-traded funds, and many other instruments. The American Stock Exchange in New York serves as a platform for making trades in second-class securities. In the early stages of its development, the exchange was presented in the format of an open-air area on Wall Street, where deals were concluded. Only in 1921, the marketplace moved to a covered area.

To be able to invest inAmerican stock market, you need to open an account with one of the brokers, which is focused on providing services to traders from Russia. Each broker has experts who will tell beginners what to do. The rating of stock market brokers indicates that it is preferable to cooperate with such companies as Finam and Capital Management, Insta Trade and United Traders, INVEST. These are brokers who, by a number of criteria, were identified by the world's best agencies as the most reliable.

Features of trading on the American Stock Exchange

The stock market of Russia is radically different fromAmerican, which determines the specifics of the trade at last. Let's start with the fact that deals within the framework of the platform are concluded between bidders. Spread loss is optional. Market participants can not only accept or reject prices, they can offer their own. Within the framework of the exchange, each trader gets access to information that includes not only the price schedule. A trader can estimate the volume of operations, the depth of the market, the tape of prints and imbalances.

The stock exchange offers a huge rangetrading instruments, of which there are at least 6.5 thousand, which automatically provides great opportunities for competent risk diversification. Trading on the stock exchange can be carried out daily, as the number of shares is very large, and it is very easy to choose the optimal ratio of risks and profits. In order to start an active trading in stocks, you need a deposit of at least a thousand dollars. Companies offering to start at $ 500 offer very unfavorable terms of trade. You have to pay for the trading platform separately, but the profit from trading more than covers all costs.

The capitalization of the American market is equal to manytrillions of dollars, which makes it attractive to investors from around the world. And within the market there is a huge number of undervalued stocks that will make good money, and a large number of overvalued, opening up no less broad perspectives. Experts recommend developing long-term investment projects, rather than counting on short-term profits and quick returns.