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The stock market is  known as share that piece of the company, when you buy shares, you buy part of the company are, in fact, the stock market is a place that is buying and selling these stocks, as have the stock markets regulations are strict laws regarding stock trading, listed companies, has been in the past the process of buying and selling stocks in the trading floors which started to disappear after becoming a trades are electronic.

The inclusion of the company in the stock market:

Is the inclusion of a company in the stock market through something called the public offer the initial terms when the company needs to increase its capital, where it determines the price of the evening based on the value of the company who is to guess, the number of shares that will be put up, the company is directly taking money from the public offer the initial offering of stock to organize their work, and continue to trade in a stock exchange such as the New York Stock Exchange, and others.

The importance of the stock markets :

The importance of stock markets in a number of things including:

  • Allow the stock market companies in its shares, and its bonds to raise capital.
  • Allow investors to contribute and participate to the achievements of the financial police, in addition to the financial benefits of the company.
  • Scale Money, where it becomes the stock market barometer financially, and an important source of decision-making, and assessment of the state of the economy in general.
  • Play an important role on the mobilization of national savings, financing of the economy.

Actors in the stock market:

There are many people, and nomenclature, and the various actors commit to the stock market, including brokers, traders, and Stocks, portfolio managers, banks, investment, where each of them has a special role, and many roles are intertwined and are dependent on each other to make the market work effectively.

The most important global stock markets:

There are a number of of the largest, the most important stock markets in the world, including:

  • The New York Stock Exchange: Market Size 19223 billion USD, and the age more than 200 years.
  • The Nasdaq: Market Size 6831 billion USD.
  • London Stock Exchange: Market Size 6187 billion USD.
  • The Tokyo Stock Exchange: Market Size 4485 billion.
  • The Shanghai Stock Exchange: Market Size 3986 billion USD.
  • The stock exchange of Hong Kong: market volume 3325 billion USD.
    Note: it is worth noting that the oldest stock exchange is the Amsterdam Stock Exchange in the Netherlands.

The definition of stock

Definition of equity stock (in English: Stocks) are securities representing a percentage of private capital in the company, may increase or decrease the value of the stock based on the spread in the money market, and equity as the amount of money which is part of the ownership of a company, it is possible to put up for purchase by the public.

Definitions of other stocks is the amount of the share capital of an existing company or a contribution to, and used these shares within financial transactions that depend on the circulation between a group of individuals.


The characteristics of the stock :

Features of stocks have a range of characteristics including:
Help value: is the integration of all the value of the stock of the company, which together constitute full value of its capital, has been setting limits and lower to the par value of the shares based on trade laws.
The target output is equal to the value of the stock it easy process companies, distribution of profits, and organization of stock prices in the stock market (the stock exchange); therefore, it can not issue stock without specifying its value, the date value of the equity is to achieve equality in the rights granted to the shareholders, relieve the nature of these rights, with different types of stocks.


Help value: is the integration of all the value of the stock of the company, which together constitute full value of its capital, has been setting limits and lower to the par value of the shares based on trade laws.
The target output is equal to the value of the stock it easy process companies, distribution of profits, and organization of stock prices in the stock market (the stock exchange); therefore, it can not issue stock without specifying its value, the date value of the equity is to achieve equality in the rights granted to the shareholders, relieve the nature of these rights, with different types of stocks.

  • Facing the responsibility of the partners: are to achieve justice in the distribution of responsibility between the shareholders, the participants in the company based on the value per share for each of them.
  • Non-transferability of stock retail: is the lack of the possibility of the diversity of owners per share; even if you moved the ownership of the stock to other people as a result of a will or inheritance, the retail value of the stock is unacceptable when companies; so you should choose the heirs one person to represent the value of their shares in the company, and the indivisibility of stock in the ease of achieving access to rights, the application of mutual obligations between companies and shareholders.
  • The possibility of trading stocks: are the characteristics of nurses, special in stock, it is rare to remain arrow when the owner first for a long time, but the stock is trading between more than one contributor, during the process of buying and selling in financial markets.
    Types of stocks:
    Different types of stocks, according to principles of the treaty in the classified, Here Comes the information about the main types of stocks:
  • Cash equities: is the home equity that form the cash value of the company’s capital, also accept trading in the financial market; because money is a unit of account and measure the value of capital of companies.
  • Stock in-kind: are getting provided by some of the shareholders of the company, provided, however, that be of a value equal to the cash value per share, and equated with the equity value or its complications, which helps to ease the expense.
  • Stock name: stock of which records the name of its owner, and serial number of each share thereof in the books of accounts of the company, and changes in its ownership permanently. Bearer shares: are shares which are not necessary to mention the name of its owner, it is sufficient evidence of ownership in order to contribute to the proof of revenue for its owner.
  • Stock notes: this is a stock that depends on the name of the underwriter, and are traded on the basis of a signal from its owner, the signature of which shows the mix of ownership, this signal is called an endorsement, nor is there any need for this process in the records of the company.
  • Common stock: stock issued valued equal with, and out of stocks issued by Joint Stock Companies.
  • Preferred stock: is a special kind of stock provides its owner a range of features that distinguish them from ordinary shares, including a guarantee of the value of the original shares in case of loss, priority of the access of owners of these shares on their share of the dividend, or upon liquidation of the company.
  • Capital shares: are shares that remain present with the continued existence of the company, and shareholders get their value only in the event of liquidation of the company, this is the nature of the original shares of Joint Stock Companies.
  • Shares enjoy: the stock issued by companies with the aim of exceeding financial problems, or to obtain financing for additional financial, It is possible to recover its value during the period of existence of the company, with a link to its owner on condition not to cut ties with the company.

Types of stock split the stock to adjustable types in the securities markets; the IDMA information about them:

Ordinary shares (Common Stock) :

Is stock Most version and debated among the people in the market, and private ownership of companies and a copy of the financial profit. Each investor in ordinary shares to participate in the election of the board of Directors of the company; it gets to one vote for each share owned in the company.

Help of ordinary shares long-term development capital; by increasing the proportion of the financial returns for all investments within the company’s activity, and often the value of returns higher than the cost of the stock, but entail some risk; especially in case the company goes bankrupt and became negotiable, and then don’t get the owners of the stock on the value of their participation in the capital only after paying the debt with the value of the bond and preferred stock owners.

Preferred stock (Preferred Stock) :

Are the shares constitute the percentage of ownership of the company, but it does not grant the right to vote to shareholders, and are considered blue-chip stocks – guaranteed profits steady, contrary to the ordinary shares of the earnings variable, and the liquidation of the company receives the shareholder in the share premium on share before other shareholders, and some investors into this stock as the accumulated debt to capital.

Feature of preferred stock for common stock as being available on a range of species, namely:

  • Stock (Non-Cumulative): type of preferred stock but does not possess any additional advantages, and the owner of the stock to get the value of the returns advertised, and in case of the inability of the company to the payment of dividends there are no benefits to the investor.
  • Cumulative stock: the stocks are characterized by the protection of shareholders in case of financial difficulties or non-payment of dividends, which accumulate the value of the stock returns on the company until they become able to pay it.
  • Common stock: is that give their owners the right to receive dividends preferred stock as advertised, and earnings additional common.
  • Tradable shares: are shares that provide the switching feature of Preferred Stock Shares of the ordinary at a fixed price called the conversion price.
  • Shares of summons: are the stocks that benefit the company and not the shareholder; the Company shall be entitled In this type of stock recovered when the expired.

The stock issuance:

Is the issuance of shares of Special Functions in a Joint Stock Company during its foundation, which helps in assisting the individual shareholders to participate in the capital of the articles of incorporation, or in the increased share capital of the company when needed in the future, and there are many reasons associated with the issuance of stock, the most important of which are:

  • Increasing the liquidity of Private Financial in the company in order to face the financial crises or losses.
  • The financing of new projects with a view to business development.
  • Participation in the capital of rival companies for reasons of strategy or investment.

Rights of stock holders :

Enjoy the equity holders, i.e. shareholders in the company, the range of guaranteed rights in accordance with the law, including:

  • Get a share of the liquidation value of the company, whether resolved or ended the period of its existence.
  • Participate in the management of the company, general meetings and special sessions of the shareholders. Right to participate in elections of the board of directors through the soil or to vote.
  • Get a share of the profits distributed during the year, which is determined by the General Assembly of shareholders, and is distributed according to the share of each shareholder in the capital.
  • Right of access to all documents and information is important in order to follow the work and activities of the company.

The characteristics of the stock:

Features of each type of stock has certain characteristics; they: :

The characteristics of ordinary shares:
Are the special features in this type of stock, and to the following:

  • The remaining claim: is the access of the shareholders in the ordinary shares of their rights in the income and assets of the company at the end of the process of liquidation.
  • Limited liability: it is the probability of loss most shareholders the value of their participation in the investment when the inability of the company to invest properly, and in case bankruptcy may lose all of the shareholders of their shares in the company; which leads to their loss.

The characteristics of Preferred Stock:

Are special features in these stocks, and submit to the following:

  • Dividend blue-chip stocks in the same way that the distribution of the common stock dividend.
  • Like preferred stock and bonds; they pay dividends to shareholders based on prior agreement, with its distribution at regular time intervals.
  • Pay some companies price value issuance of preferred stock before the maturity date.
  • Do not grant preferred shares the right to vote of shareholders in companies.
 


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