WHAT HAPPEN ON THE STOCK EXCHANGE

inglese

main stock exchange

New York

London

Tokio

Frankfurt

share is the part in which is divided the capital and is known as stock and the owner are called stockholder or shareholder

REASON TO BUY A SHARE

you could make a profit i 131d36b f you sell them

after their value has risen

you could earn a dividend from the company's profits

RISKS TO HAVE A SHARE

you could lose if their value goes down

you could receive nothing if the company has not profit

BOND

is a document issued by a government or company when borrowing money from public, the owner are called bondholder and with it the older obtain repayment of loan, plus a fixed rate of interest

BROKER

is an intermediary who buys and sells shares on behalf of the investor

types

bullsgbelieve that the value of the shares will rise

bearsgexpect that the prices of shares will fall

27^TH OCTOBER 1986

the london stock exchange change because the old system didn't allow london to complete successfully as an international financial market place

changes

all member companies on the stock exchange can now buy from or sell to their client

fixed commission were abolished and it means that the big buyers shares an negotiate very long change

companies outside the stock exchange could become members of it

seaq (stock exchange automated quotation) was introduce and because of this computerised system dealers buy and sell directly from their offices

was founded in1792, it is based in wall street and is opened in 1922

PLACE ORDER

an investor place an order to buy and sell shares

CHECKING OF COSTUMER'S ACCOUNT

a nyse member brokerage firms checks the costumer's account

TRANSMISSION OF THE ORDER

the firm's clerk receives eh order by phone, by wire or manually

TRADING

a specialist exposes the order in the agency auction market and makes trade, trying to find the best price for the customer and broker takes the order to the trading post where the stock is traded

ISSUING OF TRANSACTION REPORT

a transaction report is sent to the originating brokerage firms and report are also sent to consolidated tape displays world wide

POST TRADE PROCESSING

a post trade processing takes pace almost immediately

CONFIRMATION OF THE PROCESS

the investors receive a trade confirmation from this firms: if shares were bought, he submits payment, while if shares were sold, the investor's account is credited with the corresponding sum