Stock markets of the world
Stock market as the name suggests signifies those markets of business wherein stocks of different companies are traded. People buy stocks of a company at preferably lower rates and sell them at higher rates to earn profits. The Stock broking company becomes the medium, which helps the common people to buy and sell these stocks. So their role is more mediator. These companies charge commission in return to their services. The banks allow the stock broking company to buy the stocks from the stock exchange. Here the bank becomes the mediator between the stock exchange and the stock broking company. Stock exchange is the place wherein different companies keep their stock for selling motive.
The companies sell their stocks through stock exchange with a reason of fulfilling the capital requirement of the company either to fulfill some consignment, or to start or continue with some growth and development project. While taking loans from banks may costs these companies a big amount of interest repayment. But by selling their stocks in the stock exchange these companies can manage to get the big capital requirement at no interest repayment tension.
Now days inter continental and overseas stock trades are becoming a common phenomenon. People of different companies try to invest not only in the stock exchange of their own countries but also in the stock exchanges of other developing countries. That is investors from United Kingdom, United States, Canada etc makes investment in developing countries like India, China, Brazil etc. The reason behind is that the pace of growth in these countries is quite higher than the developed nations. There are still many opportunities that are being explored or remain to be explored which can result in big profits.
World federation of stock exchanges
Some people may some doubts in their minds regarding stock exchange investment. The question that may arise can be any of the followings like,
- What if some fraudulent activity occurs
- What if the fraudulent activity occurs outside the country
The answer to the above query is that there is nothing to be scared of. There is a Stock exchange board in every single country, which keeps their eyes on the stock exchange, and incase of some fraudulent activity figured out that an appropriate action is immediately taken. Action can be in the form of closing or freezing the frauds account and taking him/her in custody.
As far as the question of fraudulent occurring outside the country is concerned, than leave that tensions to the World federation of stock exchanges. This federation includes members of almost all the countries of the world who meet after every fixed interval to discuss the various issues regarding stock exchange. In case of some fraud happening in one country the World federation of the stock exchange asks the stock exchange of that particular country to take appropriate and quick action to save the losses of any of their investor. The fraud can occur because of some big investor or investor group. The other kind of fraud may occur from the company side by issuing the selling of such stock which does not even exist.
World federation promises to keep the investment of overseas and inter continental investors safe. The stock exchange federation always comes to the rescue of the investors of different countries in case they find the hard-earned investment of the common people going in to dust.
Various stock exchanges of the world:
Every country has its own stock exchange. The World federation of stock exchanges keeps an eye on all these stock exchanges. On the other hand all the stock exchanges of the world are answerable to the World federation of stock exchange on all stock related issues.
Movement of stock exchange:
These days the world stock exchange looks like moving in the same manner. When the NASDAQ or NYSE declines the stock exchanges of other countries also tends to fall. In the same way if FTSE shows upward movement the stock exchanges of the world shows upward movement. Mostly the Asian stock looks more effected by the western stock exchange movements. For instance, downfall in NYSE is mostly followed by downward movement in China, Indonesia, Japan etc.
The chirpy movement of the world stocks and big high and big lows are now becoming a common feature of the world stock exchanges. The investment in stocks has increased many folds and so has the return from investment in the stocks tempting various people of the world to invest their money in stocks and earn good returns from their investments.
Evaluation:
The stock exchange of various countries are well knitted together under the name of World federation of stock exchange which keeps an eye on all the movement the world stock exchanges and in case of some fraudulent activity occurring and then quick and appropriate action is taken at once. The movement of the stock exchanges of the world is now more like follow the leader type. If the giant market falls the other too fall with the leader and vice versa. The investment in stocks and interest of the common masses has rise magnificently in the past decade. The control of the World federation of the stock exchange helps the investor to relax and take no tension about their investment in other countries.
Other Articles
