economy

definition of stock market

The word stock market is used to designate everything related to the Stock Market, its operations, its values, indices, among other issues.

That is, the word stock market designates all those Financial activities that are carried out through the Stock Exchange, the Stock Exchange being precisely the most frequent in which they are carried out.

The Stock Exchange is a private type organization that offers facilities to its members so that they can enter orders, carry out negotiations for the purchase and sale of securities, such as: company shares, corporations, public and private bonds, titles, among others. The negotiation in the stock market is carried out based on known prices that are set in real time and in a safe environment for shareholders, that is, the transactions are regulated which provides a framework of security and legality for those who intervene in them.

Companies are the ones that mostly go to the stock market or Stock Market to sell their assets and in this way get the money they need for their investments. The assets are the aforementioned bonds, titles, shares of public limited companies, among others, which will be acquired by investors, who can be natural persons, or, failing that, legal persons, who have excess money which they want to invest so that they can give them a future benefit.

The purchase of securities or shares or any other operation carried out with the Stock Market is a risky investment since the profit that can be obtained is uncertain, millions or losses that are difficult to face.

On the other hand, the falls of the stock markets of the different countries and especially those of world reference usually unleash complicated economic crises.

Meanwhile, the origin of the term comes to be the result of the surname of the Van Der Buërse family, a family that in the thirteenth century was dedicated precisely to holding commercial meetings in the city of WitchesAlthough the volume of operations that this family carried out was really impressive for the time, the first formal Stock Exchange was created in Antwerp in the year 1460 and the second in Amsterdam, in the sixteenth century.

For his part, the Stock index It is the number that reflects the variations suffered by the prices of the negotiable shares.

The Stock Law It is the branch of Commercial Law that deals precisely with the regulation of the stock market.

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