Stock market enjoys a major role in the financial structure of a country/region and is considered as a barometer of economy in that area. To understand how stock exchange works it is required that one gets familiar with its operating system. Apart from other trading markets it operates on pre-set norms that are formulated in accordance with international standards and regulated by autonomous authorities while also being guaranteed by the respective government. These markets provide a wide base for investments and in real terms act as stock market forums.
The capital stock of a listed company is divided into segments of same denomination and is termed as shares. Shares are offered by the companies through an initial public offering at an issue price after which they are floated in the financial market. The market price of the stock is then determined through secondary market known as the stock market. There are many types of shares; most common of them are ordinary shares. The value at which these shares are initially issued by the listed company is the sum of par value and share premium amount. The rate at which these shares could be freely traded in the stock house is termed as current or open market value.
The stock market allows ordinary person to become a part of the public company by gaining ownership of stock. The rights empowered by the shares depends upon the terms and conditions within the memorandum of association whereby share holders might also be empowered with the right to vote in the annual and special general meetings of the company. They are also eligible to receive share from the earnings of the company termed as a dividend which may be in the form of cash or shares. Declaration of these dividends effects the stock trading of these listed public incorporates on the floor of stock forums.
The quoted rate of the shares in the stock market tends to fluctuate depending upon the nature of buying or selling which may be dull or brisk. In the market there are two types of trading forces namely buying and selling that try to drive trend in their desired direction. These are termed in stock market forums as bulls and bears respectively. Many times trading in these markets becomes volatile due to sudden changes in upwards or down wards stock trends. It is due to this fact that sensitive stock businesses get quickly impacted from the occurrence of national and international events. Investors can make huge gains although it requires a specific level of concentration with updated portfolios of listed incorporates.
Several known Top Penny Stocks market forums operate across the globe such as New York Stock Exchange and London Stock Exchange. In this new era of global communication, stock trading is possible within matter of seconds. Stock holders can operate from anywhere across the world and conduct transactions. Moreover, physical paper share certificates acquisition and transfer is no longer obligatory as they are electronically saved and retained by centrally deposit authorities. All this facilitates investors to access awesome penny stock market anytime with slight movements of their finger tips.