Who are the participants in the stock market

All participants can be divided into three types:

1 Investor - a natural or legal person who buys shares

companies investing money with the prospect of obtaining

profits from the difference in the price of securities.

2 Issuer - a company or organizations that issue valuable

paper on the stock market. Thus, she attracts

additional funds for their development. IN

not only companies can act as an issuer, but also

the state.

3 A broker is an intermediary between an investor and an exchange. He

makes transactions on behalf of the investor.

Among the listed participants, it is the broker who is

connecting link. Without it, it is difficult to enter the stock exchange. For example,

to enter the Moscow Exchange, a contribution of 3 million rubles is required. Not

every participant can afford it, so everyone

use the services of brokers.

Why is the stock market needed?

1 Attract private individuals to finance the development of enterprises,

companies, individual industries and the entire economy of the country. For example,

abroad, employees buy shares of enterprises where

work. Thus, they participate in the development of their

enterprises, investing in its future, receiving income from shares.

This is a mutually beneficial cooperation - some receive money for

their development, others increase their passive income.

2 Attraction of additional funds from outside.

For example, for the development of a company, additional money is needed,

which they don't have. To get them, she releases valuable

paper of a certain value. Sells them on the stock exchange and receives

free funds.

3 Increased competition. To motivate the investor to invest in

your business, you need to convince him that your products are the best, that

in the future, it will bring additional profit, which

split between the shareholders. In this way,

competition in the market increases, and this contributes to the development

industry and the economy as a whole.