Definition of

stock market

stock market

Company shares, bonds and other securities are bought and sold on the stock market.

The stock exchange is an organization that allows its members to carry out negotiations to sell and buy company shares , bonds and other securities. These operations are also carried out on the stock market.

The most common meaning of the term bag refers to a bag that allows different objects to be stored and transported inside. However, the concept has other uses. Stock market, for example, is the name of an institution of the economy where the sale and purchase of securities takes place, to which the notion we are analyzing refers.

Operation of the stock market

To acquire a bond issued by the State or shares of a certain company, it is necessary to go to the stock exchange. Negotiations are carried out based on prices that are taken as a base and that vary throughout the day. These fluctuations are known in real time since the price is the most important information for the investor.

To guarantee the transparency and security of operations, the operation of the stock exchange is regulated. Only authorized people, who are known as brokers or stock agents , can negotiate and operate there. If an individual wants to buy or sell shares , he must therefore give the instruction to his broker.

Securities

Technology makes investing in the stock market easier.

Investment and financing

The stock market, in short, allows savings to be converted into investment (when someone buys securities) and makes it possible for companies to obtain financing (by offering their shares so that the public can acquire a participation in their capital). The State can also finance itself through the issuance of bonds.

Nowadays, thanks in large part to the flow of information that we can access through the Internet, many people are interested in the stock market, especially young people who are still looking for their place in the business world. Of course, learning to invest in the safest way possible is not easy; It is a long road that requires great discipline .

Tips for investing in the stock market

Below is a series of tips that are usually offered to those who want to start investing in the stock market:

  • Learn from the experts : As in any field, there is no better way to learn than by observing the best up close. On the Internet there are many profiteers who pose as experts with the aim of emptying the pockets of those who are taking the first steps, and it is essential to recognize them in time to avoid them by all means. How to find those who can truly teach us? It is best to look at the trajectories .
  • Read a lot – There is no denying the importance of dedication in becoming a good investor in the stock market. Therefore, in addition to observation, it is necessary to read many books and tutorials, although always looking for good quality ones and discarding the "magic recipes" offered by the charlatans mentioned in the previous point.
  • Be patient : perhaps it is the most useful advice to achieve any goal, but in this case it is especially necessary. Some believe that investing in the stock market is an art that we have never quite mastered. Therefore, we must arm ourselves with patience and know how to overcome our failures, to get up and try again with new and better strategies until we achieve goals that satisfy us.
  • Apply what you have learned : it is useless to read a lot if when it comes to acting we allow ourselves to be guided only by our impulses. It is advisable to put into practice each concept learned to prevent them from being lost in oblivion or from accumulating and making it very difficult for us to execute them all. In fact, we do not have to take risks with every practice , since there are many simulation platforms in which we cannot lose a single coin.