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
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
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.