When it comes to the stock market specifically, opinions are divided into two halves: a very small number of individuals know what the stock market is, its rules, and news, and are able to invest in it and make profits. The other half, representing the vast majority of individuals, wonders what the stock market is.
In general, the stock market is a huge market for securities in the world, and securities mean stocks, bonds, or investment fund documents. The technical definition of the stock market, or more precisely the definition of the term stock market, is a market with fixed regulatory rules that cannot be deviated from, in which securities of all kinds are traded by financial market specialists and experts in money movements. Securities are not only limited to different currencies, but they also exist in the form of financial bonds, shares of a specific company, or investment documents. The aim of the stock market, whether for the investor or the owner of the securities, is certainly profit in both cases. However, the profit differs in the case of the securities owner in that they aim to expand their work and increase the funding within their company or private institution.
Primary Markets: In these, companies, governments, municipalities, and other united bodies can raise capital by directing investors’ savings into productive projects.
Secondary Markets: In these, investors in secondary markets can sell securities to other investors, which reduces investment risks, maintains liquidity in the system, and enforces strict rules, scheduled requirements, and binding legal requirements for all listed and traded parties.
Transactions in old stock exchanges are conducted on the floor, called the trading floor, through an open outcry system. In modern exchanges, transactions are conducted via phone or the Internet. All exchanges can be considered auctions, where buyers participate in competitive bids, and sellers participate in competitive orders during the trading day. However, some European exchanges have used the periodic auction method, conducting a periodic challenge once in the trading day. The first stock exchange was opened in Amsterdam in 1602. The world’s top three stock exchanges, in descending order, are the New York Stock Exchange, the London Stock Exchange, and the Tokyo Stock Exchange.
Investment in the stock market relies on purchasing equity shares in a known company called common stocks, where the return on investment depends on the success or failure of the company in which the investment was made. When the company performs well and earns profits from its products or services, it benefits from its success.
Benefit from Economic Growth and Company Profits: Because growth in the economic sector contributes to income production, which enhances the demand for products, resulting in an increase in the monetary revenues of companies.
Ease of Purchase: Investors can easily buy securities and stocks through a financial analyst or broker, or via the Internet.
Buying securities at low prices and then selling them at high prices, which is common among most investors who seek to benefit from the profits of companies whose stock prices grow over time.
Many investors prefer to earn money by buying shares in companies that offer them financial profits, as they achieve moderate growth.
Ease of Sale: If an investor needs money, they can sell some of their shares at any time, but due to the fluctuating prices of securities, there may be a risk of loss from this sale.
Now, after knowing the basics about the stock market, the question arises: How can I invest in the stock market?
The general and most important rule is that all companies in the world cannot trade directly themselves but through a financial brokerage company. First, head to a real, trusted company with a physical location, a large number of clients, wide acclaim on all media or social platforms, and provides all the suitable services needed by the client.
The best example of this is “Uni Borsa.” You can join by visiting their headquarters if it’s nearby, or register through their website online, then open an account and provide them with your correct personal identification documents. Later, you will be provided with a specific account number with them, and through the available deposit means, the broker will enter you into the available stocks as per your request, and then the stock will move from the investor through the broker to you.
In conclusion, some believe the stock market is a scam on individuals to make money illegally. Not, especially since the stock market has strict laws, limiting manipulation opportunities. The stock market is a big and complex world, and the decision to enter it comes after a good study and understanding of its nature and the consequences of entering it, to reach the desired goal, which is to make profits. The entry is through an accredited brokerage company.
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