Frequently asked questions about financial markets in the format “Question answer“. It will be useful for those who are studying and gaining knowledge of trading and investments in the stock market and the market
Frequently asked Questions
What is the stock market?
Stock market is a collection of markets and exchanges, where is the issue and sale of shares, bonds and other types of valuable assets, as well as their official exchange. The stock market is one of the most important components of a market economy, because it helps companies gain access to capital, and investors their share of ownership in various projects.
With the ubiquity of the internet, access to trading on the stock market has become very simple and today almost everyone can work with it. You just need to open an account with a brokerage company, top it up, master the theoretical basics, install simple software and you can start trading.
What is a stock exchange?
Stock Exchange - it's a marketplace, on which securities and their derivatives are traded (stock, futures, options). The main task of the exchange is to build a transparent and fair market for trading financial instruments.
A striking example of such exchanges are: London exchange, Moscow Exchange, New York Stock Exchange, etc..
Another important factor is the neutrality of the organizers of the exchange in relation to trading participants.. For that, for all parties to fulfill their obligations, there is a regulator on the exchange, which the, most often, represents a state structure. There are sites, where the regulator is absent, or performs a nominal function. These exchanges include FOREX and cryptocurrency exchanges..
Separately located commodity markets, where bidders not only try to make money on the price difference, but also satisfy their real needs in that, or other product.