What is Stock Market definition/concept

We call the stock market or stock market any event, transaction or circumstance related to the stock exchange, body responsible for trading securities such as stocks, bonds, etc. It derives from the term scholarship, which in turn, derives from the surname Van Der Buerse, a noble family from the city of Brussels that had a castle where meetings of a commercial nature were held; and so, because of the volume of exchanges carried out, his name was used for all capital markets .

Stock exchange operations meet three major needs: obtaining financing from companies that place shares on the market in exchange for cash; offer savers the possibility of becoming investors; and finally provide financing to the state , usually through the issuance of bonds. In relation to everything related to the stock market, it involves three elements: demanders of capital (buyers), suppliers (sellers) and intermediaries.

Trading of stocks is carried out through members of the exchange such as brokers, brokers, agents, etc. These receive a commission for the work performed. Traders often use method-based stock systems to predict the value of an asset in the future, based on historical database and mathematical analysis.

Companies wishing to quote shares on the stock market must submit a book containing data on their financial status, so that the market can correctly assess the value of these shares. In addition, the stock market is regulated by the state, which creates rules for its proper functioning.

Currently, stock markets are electronic, that is, they exchange through an electronic communication network . They are supported by a set of servers with appropriate software to integrate all vendors.

There are stock market indices that try to explain the differences in the value or profitability of stocks on average. These actions usually have a number of characteristics in common, such as being part of a particular industry. The first stock market index was called the Dow Jones Industrial Average.

Currently, the development of the stock market is of great dimension, to the point of operating sidereal figures at an international level. It is undoubtedly a development closely linked to world capitalism as an economic system , a development that continues to expand.

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