What is the functions of stock exchange and stock exchange benefits?

A stock exchange is an entity that is registered with the Securities and Exchange Commission (SEC) to provide services to its members to trade securities. The stock exchange provides a meeting place and equipment and services necessary for members to gather for the specific purpose of buying and / or sale of securities.

About the exchange

The stock exchange has as one of its responsibilities to oversee the activities of its members for strict compliance, not just the rules of stock exchange, but with all the rules and regulations governing broker / dealers. All members of the bag also have their filings with the SEC. You can not negotiate in the bag unless you are a member of the stock.

Consider this

Many companies register with the specific stock exchange so that their actions can be negotiated by exchange members. Changing monitors the companies and compliance with respect to financial reporting and disclosure to shareholders.

The main advantage

It offers a change of "compliance" with rules and regulations. Not only confirm that its members and companies agree that the rules of the SEC, but also the companies that list their securities on the stock exchange to be traded must be in accordance with the rules of the SEC.

When the stock market crashes and people lose their investments, where does that money go? Who gets rich?

People who sell short.

Short selling is the process of lending shares, literally, a broker and sell the shares to another person. Then buy the shares back at a lower price will give the stock back to the broker and money.

Thus, for example.

If Yahoo stock is trading at $ 1.00 and you think that Yahoo values ​​going down, a short operation starts with your agent and borrow 100 shares of them, then sell the shares to someone on the market price of $ 1.00 each for a total of $ 100. So now you have extra $ 100 in your pocket and you own your broker 100 shares.

If the value of the shares low

as expected ... now buy the shares back at lower price and gives the broker his actions. So if the price drops to $ 0.80 .. you take the $ 100 he had in his pocket and buy the stock from $ 0.80 a piece for a total of $ 80 and give the people back to the corridor and left with $ 20 profit in your pocket.

How accurate is Dow Jones in the prediction of stock index futures trading on that day?

It depends on the news that day. If something unexpected happens on the day shift that the future is accurate. Premarkets often be in the market falls that day. And the reverse also happens.

Consider this

In terms of accuracy, do not take any decision based on pre-market action alone. Today is a good example. The markets were in pre-market, which are noon, but how in the end the market today is unknown.

About US federal bonds selling securities or bonds at a negative yield . What does this mean?

This means that the bonds are sold to third parties more than the value at maturity. Say a year $ 100 1 bond has a yield of 3% so it's worth at maturity is $ 103. If someone buys the bond to the original purchaser of more than $ 103, then it would have a negative return.

Bond yield

All U.S. federal bonds have hidden a negative return when sold. That's because when you look at investments, one has to figure in taxes and inflation to see whether it's worth a raise and not only the total. Say there is a 3% inflation when the bond was issued on 3%. Although the link went to $ 3, inflation ended the purchasing power. What is worse for the owner is the person still has to pay taxes on $ 3, which is where performance comes into play hidden negative

How to find the volume of a stock on the stock market?

The volume of an action (ie how much is sold) is reported daily in almost every website (like Yahoo Finance), which has sections for financial information. You can also find the number of shares was issued from the same view.

The volume is generally irrelevant to the company

(unless the company is planning to issue new shares or repurchase shares of age), but should be a factor when deciding to buy shares. Stock low volume can be relatively illiquid, which means it's harder to sell and are more likely to incur costs (the spread) by having to use a market maker.

What is the market cap of a stock on the stock market and how does it effect me / my investment?

Total shares outstanding * share price = market capitalization

Large-cap stocks are more liquid (for example, loses less transaction costs) and tend to be more stable (for example, that sleep better at night) with a more institutional. (leading to stability).

How it affects you.

Nothing that affects unless you buy it. With that said, there are index funds and actively managed mutual funds that buy stocks based on their market capitalization. The market capitalization of a company, you care whether you're buying a fund that seeks to invest in it. In our example above, the Corporation An example is a small-cap stocks. So if you are buying a small cap fund, then it would mean something to you.

The British news channel is better for stock market news?

Bloomberg TV broadcast online all the news you need to know.

Can you become a millionaire with the stock market ?

Yes .. but can also lose your shirt. Those who make wise investments with a long-term asset allocation and risk management, and clear investment objectives can become rich in time.

Consider this

Those who go for easy money usually end up losing most or all of what you put inside. If you want to do well, however, start with some good basic books, like Investing for Dummies.

Can you invest in the Stock Market without a Broker ?

You can not just buy shares yourself, you have to have a person or company to do it for you. Go online, select an online broker like Schwab, TD Ameritrade, etc. Open an account, transfer money from your bank account online broker.

Decide

What action you want to buy, go to the broker's website and fill out the information to buy. It is very simple. Purchase of shares through a broker is how it is done for average people. TD Ameritrade charges $ 9.95 per trade. If you were a broker with an office in his city, the commission would triple.

Good online brokerage firms for the Stock Market

All major brokerage firms offer their clients online services, including trading platforms, the latest market and financial news and research. Customer has to select the site that is best for them. Traders have requirements for a site, while investors have other requirements.
 
Consider this
 
Although most sites are aimed at general and basic values, however, customers may have special types of products they trade and the markets traded. For example, I use the fidelity of the investment. Scottrade to trade shares and thinkorswim of option trading.
 
Recommended Companies
 
It seems that the most popular companies for the online investment / trade all of which provide excellent platforms and services, Scottrade, Chas.Schwab; TDAmeritrade, Fidelity, E-Trade and Thinkorswim.

Where can you find intraday stock charts in the Stock Market ?

• Its brokerage platform must provide intraday charting capabilities.

• Any website offering financing intraday stock chart.

• You can find a good place to googlefinance.com table daily and historical data.

What is a future contract in the Stock Market?

Futures contract is a contract to trade at a specified price at a future date. Futures are a type of derivative that is not trade on populations of itself, but a contract to trade stocks. Futures are not traded in the stock market, futures are traded on the futures market.

The date specified

The purchase of a future does not mean that you have bought or sold shares, but it does mean you are obligated to buy or sell shares at the price specified in the specified date. It is more common to see commodity futures than it is to see stock futures. So, technically, the future means nothing in the stock market because the futures are traded in its own market, not the stock market.

This indicates the direction of futures trading in the stock market

The direction of the futures trading market values ​​often indicate the direction of operations in the stock market itself. In fact, experienced readers as trade in the surveillance tape in the market for stock index futures to determine the potential magnitude and / or duration of movements in the indices themselves. This can (and should) be translated into how to trade a particular stock.

Where can you Learn everything about stocks market and trading?

Forget the Wall Street Journal, though--read Investors Business Daily (IBD), instead. It's a better newspaper and it is built around a particular approach to trading. You could read _How to Make Money in Stocks_ by William O'Neil too--he's the founder of IBD.

Search your 

Local library for other books on stock investing. Try to absorb as much knowledge and understanding as possible. Over time, you must open a brokerage account and paper trade for a while - this is a practice (not real money).

Well understand 

That we will never know everything about this and the market will always do what you want to do regardless of what their positions are.

How exactly does a stock perform on options expiration day?

Back in the '80 's all the buzz about the volatility that occurred near the options expiration date. 'Triple witch Days "when the options expiration of futures, indices and stocks has been a day really scary for a commercial activity in the market (which is the third Friday of March, June, September, December, everyone knew in 1985 and nobody knows now).

About the price and expiration date

"The price of a stock trades near the exercise price of the most popular choice around 3-4 pm on the due date" is sort of weird statement. That is close to options expiration, the strike most popular choice tends to be the ATM options. You can read wrong and that the options market is an indicator of progress in the actions that will be, but that would be silly.

I'm thinking of investing in the stock market but do not know what the best software for that.

The type of software to use is 100% dependent on the type of investor / trader is. Read 4-6 books on investment and trade so they have a better understanding of the type of operator will feel... Learn the basics before you open a brokerage account. Just "give it a try" can be very expensive.

Understanding the importance of risk management. Exit losers quickly.

Do not fool yourself with ignorant statements;

• You have to go here ... can not get down.
• I like the product so it has to be a good broth.
• I heard someone on TV say it was a great stock.
• Everyone loves this population.
• I'll get more if the price drops.

How can you ever know when you are actually right about Stock Market ?

A good way to know if you are right also in the method of "back-testing," which at least indicate whether the system is working is actually working.
 
For example,
 
Say I have a particular system in mind that deals with operations that are triggered when a stock has a new record, breaking through previous resistance. Why not choose a date at random, and find all the stocks reaching new 52-week highs on that date?
 
Then
 
Through the track as if you were to put real money on the table. If you can perform this process in an impartial manner for 100 different operations, then you have an idea of ​​whether that particular system works. Importantly, be honest and not cheat to make the numbers look better!
 
If you are able to achieve an overall benefit
 
(Hopefully a good pretty) as a continuation of 100 simulated operations, then it just luck? No, chances are, you might be right. Have a good look at that system, where some hard and fast rules around, and then retest the trades. Then take action and work with that system.
 
The most important
 
You keep your losses small - the loss of almost 50% of its capital immediately trade is described as suicide by his capital. You should not risk more than 1-2% of its total capital in any one trade. That gives you a lot of "leeway" to breathe if a pair of operations that go against you.

Is there a Minimum to how many shares of stock you must buy into the Stock Market?

Some brokerage firms may charge a fee very strange, but all the discount brokers that I have seen will not be charged for the purchase of peaks (not in multiples of 100). You can not buy fractional shares, so the minimum is 1 share.

However, 

You should really consider what we are doing here. We will not be able to significantly diversity of its investment. You are betting everything in one file. This is more like a game as an investment... Buy an ETF instead. This will provide some diversification to ensure that you are investing rather than gambling.

Which do you think is better: Investing in Stocks or Saving Money in Bank?

The decision to invest in shares or deposit money in a savings account is at risk. If you can not afford the risk then you should not invest in the stock market. Just be the amount you can afford to lose in the stock market. However, you must have some money in the bank for a rainy day, even if you invest in the market.

Is There any Possibility of Fraud in the Stock Market?

• Where there is money and the possibility of manipulation of fraud always exists

• Of course. There is no possibility of fraud anywhere. Here is what criminals do for a living!

• Yes unless you are a person of high net worth, which can not approach the registered stockbroker. They are forced to go to the Sub - brokers, where they face the risk of your money to appropriate some forums day or short sale and get the late delivery of shares / stocks purchased by you through them.

• You should always go to a broker knows that you or recommended by their friends.