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Stock Exchange and 7 general tips for those who want to invest

As a matter of fact This is not the magical cave for treasure hunters that some people imagine, Nor is it a big casino that rewards the lucky ones, But it is a broad business forum to reflect the direction of the economic sector and achieve practical returns. The owner of an ongoing plan.

What is the stock exchange?

Stock Exchange and 7 general tips for those who want to invest 1 Stock Exchange and 7 general tips for those who want to invest

The stock exchange is a general term that does not refer only to the company’s shares, Commodity exchanges for bonds or derivatives and other assets include oil, gold, minerals and other oil contracts. The main functions of the Securities Exchange are to ensure fair and orderly transactions and effectively publish price information. As such, Exchanges provide a platform for companies, governments, groups and other individuals to buy and sell securities with the investing public, As specified in the Encyclopedia of Financial and Economic Information for Investments. When the term stock exchange is derived from any other supplement when it comes to use, like the Gold Exchange or the Copper Exchange, It usually means the stock exchange, Because it’s the most important stock exchange. It is also known as the stock market.

What are stocks and indices?

Shares issued by a company on the stock exchange are publicly traded titles, This allows the value of the shares and the total value of the company to be determined by supply, demand and expectations from investors and analysts.

For example Company X is worth $100,000 divided into 100 shares, Each is worth $1000.

Because the stock here is affected by supply, demand and future expectations, The value of the stock will rise (it makes no sense for current shareholders to easily give up their share in a good company), then, For example This value amounts to $1,100 per share, That is, the company will increase the total value to $110,000.

Stock Exchange and 7 general tips for those who want to invest 2 Stock Exchange and 7 general tips for those who want to invest

In this case, It may be profitable for a veteran investor who bought shares for $1,000 or less to sell his property (the number of shares he owns) in a process called profit-taking, In this process, The investor sells the asset after its price rises above the purchase level to take advantage of the spreads.

The index is a measure that calculates the average value of the listed company’s shares, And it has a number (for example, 100) fluctuates up and down according to changes in the share prices they contain.

For example If the Alpha Index includes 10 shares, The value of 7 of these shares increased by $1 per share, Three shares fell at the same value, This means that the index increased by $4. Remember that these metrics are not assessed primarily by financial value, But through default points.

The usefulness of these indicators is that they reflect the overall state of the market as a whole, or it could be a particular sector of companies with certain characteristics, Like an index of the largest companies in the country, or an index that includes industrial companies, or other companies that consist mainly of technology companies, Etc.

A Brief History of the Stock Exchange

Stock Exchange and 7 general tips for those who want to invest 3 Stock Exchange and 7 general tips for those who want to invest

The world’s first stock exchange was founded in 1602 in Amsterdam, The capital of the Netherlands, When it was just a company in need of new funding, So I decided to sell part of it with several shares (such as the company’s title deed) in general, Officials therefore noted that they needed a building as a financial centre to trade these shares.

In the 19th century, There has been considerable pressure to replace it with a new stock exchange, It was built in 1896, It consisted of four exchanges at the same time, According to a report of the Financial Numbers Portal, for stocks, commodities and corn. And the shipping trade.

Before the advent of technology, The trading process was very difficult, Exchanges have relied on rudimentary tools such as telescopes to monitor ships and estimate their arrival times, It has benefited greatly from telegraph equipment to send information in a morse manner. Some investors also relied on the boy to move the share price.

What is the importance of the stock exchange to the state and the individual?

Stock Exchange and 7 general tips for those who want to invest 4 Stock Exchange and 7 general tips for those who want to invest

As stock indices provide an overview of the expectations and performance of the country’s broad economic sectors, The broader stock market reflects economic and investor expectations.

For example Stock markets rise and fall depending on government decisions on spending and taxes, Central Bank decisions on interest rates and liquidity provision, Investors are considering the impact of these actions on business activity.

In addition Investors assess economic outlooks and decisions expected by policymakers, Identify investment trends based on valuations. Perhaps that’s why stock exchanges are called economic mirrors, It reflects what is happening and the expectation of stock prices and the values of indicators.

For individuals, The stock exchange is a great opportunity for free and transparent investment, Companies that offer shares on the stock exchange are subject to additional financial rules requiring them to discipline, Disclosure of financial statements and fundamental changes, Give shareholders the right to vote on important decisions.

While this is an opportunity for companies to increase capital, However, it allows it to grow its business, expand its business and create jobs in the economy. This investment is the main driver of economic trade, growth and prosperity.

World and Arab Stock Exchanges

One of the largest and most famous stock markets in the world is the United States market because it has the largest market value and on the other hand because it represents the largest economy in the world (United States), which turns out to be of great value. impact on the global economy. According to an analysis published by al-Economist, Last year, The largest stock exchange in the world, Previous. Outbreak (as of February 2020) as follows: NEW YORK STOCK EXCHANGE ($15.54 TRILLION) NASDAQ ($12.46 TRILLION) TOKYO STOCK EXCHANGE ($5.37 TRILLION) SHANGHAI STOCK EXCHANGE ($49.3 MILLION) HONG KONG STOCK EXCHANGE ($4.63 TRILLION), According to Al-Ain, the largest Arab stock market (until February 2021): Saudi Stock Market ($2.43 trillion) Abu Dhabi Stock Exchange ($220 billion) Kuwait Stock Exchange ($109.2 billion) Dubai Stock Exchange ($48.73 billion) Egyptian Stock Exchange ($44.43 billion)

Tips for those who want to enter the stock exchange

Stock Exchange and 7 general tips for those who want to invest 5 Stock Exchange and 7 general tips for those who want to invest

According to The Balance Financial and Economic, Despite the many benefits of investing in the stock market, Nothing is easy and requires consultation, analysis, careful planning, patience and risk- taking because it involves many risks in the report site. The most important downside is that you may lose value, If the price falls, Fully invest the arrow to zero. If a company goes bankrupt, They eventually pay their shareholders’ dues and the value of their ownership. So when the stock market falls by less than 10% it is called stock market correction and when the price falls further in a day it is called a stock market collapse and the collapse can lead to a recession in the economy that occurs. This has happened over and over again in history over the years.

General tips for those who want to invest

The fastest and cheapest way is to buy shares online.

Discount brokers or online securities brokers do not charge any trading fees for shares, They charge only small fees for some other purchases, such as mutual funds (a stock investment product). A new generation of intermediaries has emerged based on electronic applications in some countries, Including Robin Hood, Which is a way to invest do it yourself, But free services on these platforms do not provide any professional or personal guidance, Investment in the stock exchange is made through a licensed brokerage company (financial broker) to open a person’s account and unicode extracts him on the stock exchange to start trading and execute his orders. guided by a reasonable price, He must join the investment club, is a group of people looking and investing together, A full-service broker will cost more, But it’s worth the money. He will provide professional advice based on the investor’s objectives, risk profile and budget. Large investment banks provide financial planning services as well as transaction execution. Instead of buying stocks in particular, You can invest in one or more index funds or mutual funds chosen by many small investors in order to access a variety of investments chosen by professionals.

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