Investing in stocks on the stock market can be done in different ways. Discover all the major stocks on the international markets.
The share markets are the markets where companies can issue shares in order to create financing. The investors who buy the shares thereby become shareholders of the company and receive any dividends due calculated from the profits made by the company in a proportional manner to the number of shares purchased.
The share market therefore enables the acquisition of assets from all the companies quoted on the stock markets of the different stock exchanges worldwide.
The stock market is divided in several kinds of markets:
The share market operates like most of the other financial markets by passing orders relating to the selling or buying of assets quoted. Other conditions can be indicated on these orders relating to the price conditions and validation limits.
Most often, these are the banking entities or companies specialised in investment that are responsible for gathering their clients’ orders and transmitting them to the quotation system digitally.
Orders executed on the stock market are displayed in a precise order. This can be in order of priority based on the ascending price or by the time in chronological order.
Trading on the share market means that you either have to go through bank placement products or register with an online trading platform in order to speculate on these asset prices through the Forex.
There are different types of shares on the stock market. Here are the main shares and their specific characteristics:
On the online markets, you can trade ordinary shares or capital shares.
When a company is quoted on the stock market for the first time, it is difficult to calculate a traditional quotation as the performance of the asset is at that time unknown. It is however still calculated.
In fact, the initial public offering of a stock market asset is somewhat different in that it corresponds to a calculation based on the price that the buyers are prepared to pay and the price that the seller determines. Further details on this calculation will be explained later in this article.
It is important to understand that not all shares are quoted in the same way. In fact, we can distinguish two major types of quotations, live quotes and fixed quotes.
Live quotation is the most common system used and concerns the majority of assets found on the market, particularly those relating to large companies that are listed. Fixed quotes are only generally used for less liquid assets. Companies offering shares with fixed quotes are therefore mostly smaller companies with a lower exchange volume.
Although a live quote is, as indicated by its name, made in real time and therefore changes throughout the trading sessions, the fixed quotations are calculated and updated only once or twice per day.
The calculation necessary for the quotation of a share is simple in principle yet complex concerning its application on the market scale. Here we will explain as simply as possible how the price of a share is evaluated on the stock markets.
To put it simply, let us say that the price of a share is determined through supply and demand. On the stock market, asset sellers quote a minimum price for selling their shares together with the number of shares they are offering. The buyers however indicate the number of shares they wish to buy, and the maximum price offered. The price used will be that which enables the sale of the most shares taking into account the buyers and sellers.
Buy and sell orders are placed daily on the stock market. These orders may have a time limitation and depending on the order they are either to be bought "at any price" or at a "set price" with a minimum selling price or a maximum buying price.
These market orders are made by investors or issuers and executed by market members. It is a complex computer software that executes the transactions. The workstations present at the negotiators are in fact connected to Euronext computers or to other international stock markets.