The Stock Market
Do you think if your personal finance are affected and thousands of company’s shares traded because of the New York Stock Exchange? The biggest stock market in the world Billions of dollars pass from hand to hand every single day in this establishment. Two hundred years ago in front of Trinity Church in East Manhattan, the foundation of the New York Stock Exchange has started out. Recurrently owning shares in cargo was coming in on ships everyday for silver traders after the time of sharing the conception of stock, or even changing paper money was not daily usage. The business of trading silver for paper was flourished. The colonial government claimed money to fund its wartime operations during the American Revolution. Selling bonds was the only one way that was done. Bonds are pieces of paper that a person earns for an arranged price, knowing that after a period of time; they can trade their bonds for a profit. In order to raise money, the first nation's bank began to sell shares or parts of their own companies. Basically, they sold part of the company to the people who wanted to buy it, which are the essence of the present day of stock market, (Lokman, 29-33).
An agreement of starting the New York Stock Exchange (NYSE) was signed by twenty-four men in 1792, and Wall Street was becoming an essential center of these transactions. To trade with companies, they started selling shares and parts of companies between themselves and charge people commission, or expenses. A home was found at 40 Wall Street in New York for developing and extending. After they grew, they settled down in what is currently known as the New York Stock Exchange Building, (Funk, 34-43).
The word stock clearly refers to supply. In the financial market, stock means a supply of money that a company has increased. The market is a place that everyone buys or sells things. Selling and buying stock in business is referred to as the stock market. A stock market is known as an equity market. Fundamentally, an equity market or stock market is a public entity for companies to exchange stocks at an agreed price. The first move when buying stocks is to choose in which company to buy stock. It is possible to buy stock in any publicly held corporation. This means that the public can manage the corporation. Stock cannot be bought in a private or closed corporation, which are corporations that are managed either by a little group of individuals or by family and close friends. Most of the larger companies are publicly held and can be bought from them, (William, 2).
In order to select a company to invest in, make sure they are in a strong industry, and make sure the company is becoming strong or growing. For example, Coca Cola Enterprises is an enormous company that is one of the strongest in the soft drinks factory. It would make a fine stock in which to buy, although seeking a newer company that is growing quicker might earn more profit rapidly. Selecting a company in which to invest is a difficult job, and there are plenty of different methods people can be associated with to select one. Fundamental analysis is one way, in which people study the company's ongoing management and position in the market. Technical analysis is another way that is completely based on charts, in which people analyze trends that the company has and then invest accordingly. Among these methods, there is just one popular method, which is as random as just throwing darts at the stock page. It often beats out rest of all methods. Stock pages are found in the business section of the daily newspaper and business websites. In order to track investments visualize the markets; find out how a company's stock is doing, people read the stock pages, (William, 4-6).
A blue chip, penny stock, growth stock, and secondary corporations can issue different kind of stock. A blue chip is a stock in a corporation with a general reputation of reliability...
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