Stock Exchange Definition

The stock exchange is called the Stock Exchange, an organized market for the purchase and sale of securities, Such as: Stocks and bonds, [1] As defined by any organization, association or group of persons; The stock exchange offers two main services: A trading system which is: Provides a market for the sale and purchase of shares and provides a means of controlling the value of the portfolio. [2]

Stock Exchange Jobs

The stock market provides two jobs, They are:

Primary market: Companies, governments, municipalities and other legal bodies can increase capital by using investors’ savings for productive projects.
Secondary market: Investors in the secondary market can sell securities to other investors, reducing investment risk and maintaining the liquidity of the system, The stock exchange has established strict rules, predetermined requirements and binding legal requirements.

How to make trades on the stock exchange

Is trading on the ground on the old stock exchange , Trading hall known as the exchange, Through the open cry system, As for modern stock exchanges, It is done over the phone or the Internet, All exchanges can be considered as auctions, Where buyers bid and sellers place orders, the competition is fierce during the trading day, But some European exchanges use regular auctions, With a regular challenge for each trading day, The first stock exchange opened in Amsterdam in 1602. [3]

The three largest exchanges in the world

The three largest exchanges in the world are listed below in descending order:

New York Stock Exchange.
London Stock Exchange.
Tokyo Stock Exchange.

Stock Exchange Fundamentals

Investing in the stock exchange depends on the purchase of royal shares in companies known as common shares because the return on investment depends on the success or failure of the investing company. So there are two main ways to make money on the stock market, They are:

Dividends to shareholders

Stocks that pay above-average profits are sometimes called income shares. When public companies are profitable, They can choose to distribute some dividends to shareholders by paying dividends. The company’s shareholders can use their profits in cash, or buy more company shares, Many retired investors are also looking to stocks that pay regular dividends to offset income they did not receive from their previous jobs.

Capital gains

Capital gains are called capital gains, And their prices change all the time, Shares are bought and sold every trading day. If you buy, You’re going to lose capital.