Stock market is an adjective that describes what is linked to the stock market.
Bursátil is an adjective that comes from bursa , a Latin term that means “bag.” The stock market , therefore, is that linked to the stock market , understanding this concept as the financial institution that allows buying and/or selling shares .
In this sense, it is possible to talk about stock shares , stock securities , stock operations , stock agents , etc. Everything that is related to the stock market can be described with this adjective .
For example: “My father is a stockbroker: he is always aware of quotes” , “A study states that stock market operations rose 18% in the last year” , “The government announced that it is studying new controls on stock market operators” .
stock market operations
Among the most common stock market operations are the sale and purchase of bonds issued by the State or by private companies; of shares of those companies that are listed on the stock exchange; and other instruments that allow investments to be developed.
Stock trading allows a person to convert their savings into investments , expecting to receive a profit from the dividends granted by the securities they purchase. Companies, for their part, are listed on the stock market so that their shares are purchased by investors, thus obtaining important financial resources. The State , finally, can also generate resources by offering bonds and other instruments in the stock market.
Stock market operations, in any case, are not viewed favorably by all sectors of the economic and political life of a country. There are those who ask that taxes be applied to this type of activities since they encourage speculation and do not encourage production. Therefore, the resources generated are usually reinvested in new stock market operations, without society in general benefiting.
The value of stock shares changes constantly.
Tips for investing in the stock market
1- Open a securities account
Although it may seem logical, many people who enter the stock market world for the first time do not know how securities accounts work or how to open one; Furthermore, there is usually not much useful information about it. Once we have chosen the securities agency, or the bank, where we want to open a securities account , it is advisable to pay special attention to the commissions, mainly those of custody.
2- Choose the market
The first point is related to the market in which we wish to operate, given that the commissions are different for each one and this has a considerable impact on the profitability we can obtain.
3- Decide the amount to invest
This is a doubt that most people share when they decide to trade in the stock market for the first time. And the answer is different in each case, since the best advice is to invest as much as we are willing to lose . It is worth mentioning that although the stock market is not a game of chance, it is not possible to have absolute control and that is why it is necessary to remember at every step that we can lose everything from one second to the next.
4- Develop a strategy
Given that what is at stake in the stock market world is money, it is very important to be clear about where you invest, what you intend to obtain in exchange, within what maximum period, what to do if you lose everything and how to detect moments of risk. , as well as the ideal ones to invest more. Simply put, the stock market is not an environment for the lazy.
5- Take advantage of black swans
The black swan phenomenon is related to those unforeseen events that generate a great impact but that cannot be easily appreciated at the moment. For example, based on news or a rumor, an investor can make a risky decision, confident that not everyone will be aware of the door that seems to open in front of them.