Equity Market

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www.CandlestickForums.com Equity Market

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  • 1. Equity MarketBywww.CandlestickForums.com

2. Equity market is another name for astock market.www.CandlestickForums.com 3. The term equity also refers to the valueof someones ownership of abusiness, property, or a shareholderspartial ownership in a business.www.CandlestickForums.com 4. An equity is a stock or stock share notbearing fixed interest.www.CandlestickForums.com 5. In other words an equitys value risesand falls with that of a company and itsshares. It does not pay guaranteedinterest as with a bond.www.CandlestickForums.com 6. Use of the term equity market remindsus that a stock market investment isowning shares of a companys assets.www.CandlestickForums.com 7. An equity market is a public marketwhere stocks are listed, bought, andsold.www.CandlestickForums.com 8. An equity market, or stock market, hasmembers who do the buying and selling.www.CandlestickForums.com 9. Everyone else pays a commission for thisservice in order to buy stock or sellstock.www.CandlestickForums.com 10. Now, in the computer age, exchangessuch as the NASDAQ are virtual and allactivity is in a computer system.www.CandlestickForums.com 11. This contrasts with the traditionaloutcry system of the New York StockExchange (NYSE) where orders flowthrough a real person, a floor broker.www.CandlestickForums.com 12. Equity markets allow companies to raisemoney without borrowing.www.CandlestickForums.com 13. Rather than incurring debt the companysells ownership shares, giving awayfuture profits and giving a vote in theaffairs of the company for each share.www.CandlestickForums.com 14. Although a public stock company maynot incur debt by issuing stock, it alwaysruns the risk of a takeover.www.CandlestickForums.com 15. An outside party can purchase asufficient number of stock shares tocontrol the companys board ofdirectors, name its own managementand take over the company.www.CandlestickForums.com 16. Besides allowing a company to raisemoney, equity exchanges offer veryliquid investments.www.CandlestickForums.com 17. Stocks are almost always easier to buyand sell and a clear market value thanreal estate, for example.www.CandlestickForums.com 18. There are equity exchanges throughoutthe world.www.CandlestickForums.com 19. The New York Stock Exchange andNASDAQ are the two large Americanexchanges.www.CandlestickForums.com 20. Canada has the Toronto Stock Exchange.European exchanges include the LondonStock Exchange, the Paris Bourse, andthe Deutsche Brse.www.CandlestickForums.com 21. Asia has the Hong Kong StockExchange, the Tokyo Stock Exchange, theBombay Stock Exchange, and theShanghai Stock Exchange.www.CandlestickForums.com 22. In Latin America there are theBM&FBovespa in Sao Paolo, Brazil andBMV, the Bolsa Mexicana de Valores.www.CandlestickForums.com 23. In the United States market indexes suchas the S&P 500 help traders andinvestors follow the market sectors.www.CandlestickForums.com 24. A problem with dealing in many equitymarkets outside of the United States isthe lack of transparency.www.CandlestickForums.com 25. The United States Securities andExchange Commission (SEC) overseesAmerican stock markets, helping towww.CandlestickForums.com 26. insure that illegal insider trading, forexample, does not enrich some at theexpense of others.www.CandlestickForums.com 27. Although the SEC does not do a perfectjob it provides an oversight that is sadlymissing in many markets outside of theUnited States.www.CandlestickForums.com 28. Even basic stock information may belacking on some foreign exchanges.www.CandlestickForums.com 29. Unless the investor has excellent insideinformation in some foreignexchanges, the best stock marketinvesting strategy may well be to tradeand invest at home.www.CandlestickForums.com 30. Trading in the equity market requireslearning the basics of stock marketinvesting.www.CandlestickForums.com 31. As stock prices move up and downtraders and investors buy stock and sellstock in search of a profit.www.CandlestickForums.com 32. A day trader will buy and sell within aday, typically holding no stock positionsovernight.www.CandlestickForums.com 33. Long term investing engages intechniques like value stock investing inorder to capture a stock at a low priceand allow it to appreciate in value overmany years.www.CandlestickForums.com