The stock market, which is alternatively known as the equity market is described as a public establishment that exists for the purpose of trading company stocks, shares or derivatives at a settled price. It is a network of economic transactions and not to be mistaken as a corporeal or distinct entity.
The history of the stock market dates back to the 12th century. In France, there was the courtiers de change that handled the banks’ management and regulation of debts of agricultural communities. They also did exchanges with debts, essentially making them the earlier brokers as well.
The stock markets of today are found in the most advanced countries and economies. The largest of which are found in the United States, United Kingdom, Japan, India, China, Canada, France, South Korea and Netherlands.
The main idea of the stock market is to serve as a significant money source for companies. Through the stock market, businesses can be traded in public. It also allows businesses to increase supplementary financial capital for further development through the sales of the company’s ownership shares to the public market. Investors are able to sell securities faster and easier through the liquidity that a trade presents. This is a feature that generally attracts the investors as opposed to different less liquid investments. In fact, by trading their own stocks, companies are able to actively expand liquidity.
From the past up to now, it is clear that the price of stocks and further properties is significant in the dynamics of the economic cycle as it can serve as an indicator or perhaps directly influence what is called social mood. An economy with a rising stock market is automatically recognized as an emerging economy. This goes to prove that the stock market is an important indicator of the economic strength of a country.
The trades made in the stock market are known as stock exchange. It provides services for stock brokers and traders to exchange stocks, bonds, and other securities. The firms that coordinate these trades are known as stock exchange operators. These operators attract prospective clients to become members, or partners in trading as some would refer to call it. Their goal is to help businesses move forward. Furthermore, the best and larger ones are adept at delivering valuable connectivity, market data services and dynamic trading functionality. Some of them even share valuable insights when it comes to navigating the capital markets.
One of the biggest achievements that a stock exchange operator can receive is the Wall Street Letter Institutional Trading Award for Best Exchange Client Service. The decision for the rewarding of the said recognition is determined by a panel of trustworthy and independent judges. These judges are scrutinized and selected by the influential industry newsletter to make sure that they make the most credible decisions. They annually announce the most outstanding stock exchange operator while factoring in how that particular firm met the two major criteria which included trading industry innovation and client satisfaction. With this award, a stock exchange operator can truly prove itself as a true innovator in its field of service.
Harriett Mizelle is a respected market analyst with years of experience in the industry. She started in the industry as a broker and moved her way up to become one of the more experienced and skilled market analysts in the Wall Street District. She also shares there her opinions about the moves and efforts of stock exchanges in the U.S. including Direct Edge.