Equity Market


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Equity Market

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Equity Market

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