The Ultimate Guide to stock market and stock exchange and searching its data

08 Feb The Ultimate Guide to stock market and stock exchange and searching its data

“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.”

– Peter Lynch

What is Stock

What is a stock?

A stock is a share in the ownership of a company. Stock serves as a claim on the company’s assets and earnings. The more stocks you buy, your ownership stake in the company becomes greater.

But it is extremely important to note that what shareholders own are shares issued by the corporation, and the corporation themselves owns the assets.

Owning stock gives you the right to vote in shareholder meetings, receive dividends when they are distributed, and it gives you the right to sell your shares to somebody else.

Many experienced people in the field say, “Investing is easy but investing successfully is tough.”

A lot of ups and downs happen in the stock market, at the fall, many win and many lose.

According to statistics, the majority of retail investors, those who aren’t investment professionals, lose money every year.

Types Of Stocks

There are two types of stock that companies can issue:

1. Common Stock
2. Preferred Shares

Common Stocks

Here are some salient features of Common Stocks:

• The most popular and talked about shares are the common shares. This is what people are talking about when they just mention “stocks.”
• Common stocks are shares of ownership of a corporation.
• Common stocks allow stockholders to vote on corporate issues, such as the board of directors and accepting takeover bids.
• Stockholders also receive a copy of the corporation’s annual report.
• You may be allowed to own a portion of the company without taking possession.

Preferred Stock

•  Preferred stock functions similarly to bonds, and usually doesn’t come with the voting rights, unlike common stocks.
•  Investors are usually guaranteed a fixed dividend in bond.
•  In the event of liquidation, preferred shareholders are paid off before the common shareholder.

Stock Exchange

Stock Exchange is an organized market for the purchase and sale of industrial and financial security. In other words, a stock exchange is a place where different types of securities are bought and sold.

According to Husband and Dockerary,

“Stock exchanges are privately organized markets which are used to facilitate trading in securities.”

Securities traded on a stock exchange include shares issued by companies, unit trusts, pooled investment products, and bonds.

Here are some salient features of stock exchanges:

1. Organized Market: Stock exchange is an organized market of securities where the securities are bought and sold on the floor of a stock exchange. All transactions are regulated by the rules and by-laws of the concerned stock exchange.Stock exchange is a market where securities of corporate bodies, government, and semi-government bodies are sold and purchased.
2. Formation & Membership: A stock exchange is generally registered as an association or a society or a company. The membership of the stock exchange is restricted to a certain number, and new members are admitted only when there are vacancies. There is a membership fee to be paid.
3. Only Members Can Trade: Stock exchange is only open to the members of exchange also known as brokers. Brokers act as an agent of the buyers and sellers of shares, debentures, and bonds. In a stock exchange, transactions take place between members or their authorized agents on behalf of the investors. Outsiders or direct investors are not allowed to enter in the trading circles of the stock exchange.
4. Listed Securities: To be able to trade a security on a certain stock exchange, it must be listed on the respective stock exchange as per the guidelines issued by the exchange. The stock exchanges do not allow trading in each and every company’s securities.. Exchanges maintain records at a central location of such securities but now the trade is increasingly moving from physical places to electronic networks enabling speed and reducing cost.

Stock Market & Stock Exchange Search

One could easily get lost in the world of investments. There are so many companies with stocks participating in the stock market. Then, there are so many stock exchanges where there are certain rules and regulations.

If you don’t know where you are heading to, you easily get wobbled with loads of information that is required to invest correctly and humongous data that is already present on investing, stock and stock exchange data.

It is thus essential that you have a reliable search engine that provides all important information about the stock and the stock exchange in one go. Making investment a pleasure rather being tedious. If you search the stock data, gather, ponder and the invest, it could save you a lot of money understanding data and also gives you a better understanding.

With the prices, profit and loss going and coming, the stock market could be a little overwhelming, but with the right stock market search tool, you could invest wisely. You must use a stock search engine which provides an accurate stock market search and stock exchange search wherein the database is updated regularly, provides understandable data and is quick.