How The Stock Exchange Works (For Dummies)
Why are there stocks at all? Everyday in the news we hear about the stock exchange, stocks and money moving around the globe. Still, a lot of people don't have an idea why we have stock markets...
==========
What is the Stock Exchange and how does it work?The Stock Exchange is nothing more than a giant globally networktend to organize the market place where every day huge sums of money are moved back and forth.In total over sixty trillion (60,000,000,000,000) Euros a year are traded.More than the value of all goods and services of the entire world economy.However it's not apples or second hand toothbrushes that are traded on this marketplace.But predominantly securities.Securities are rights to assets, mostly in the form of shares.A share stands for a share in a company.But why are shares traded at all?Well, first and foremost the value of a share relates to the company behind it.If you think the value of a company in terms of a pizza.The bigger the ov...
==========
What is the Stock Exchange and how does it work?The Stock Exchange is nothing more than a giant globally networktend to organize the market place where every day huge sums of money are moved back and forth.In total over sixty trillion (60,000,000,000,000) Euros a year are traded.More than the value of all goods and services of the entire world economy.However it's not apples or second hand toothbrushes that are traded on this marketplace.But predominantly securities.Securities are rights to assets, mostly in the form of shares.A share stands for a share in a company.But why are shares traded at all?Well, first and foremost the value of a share relates to the company behind it.If you think the value of a company in terms of a pizza.The bigger the ov...
