There stock exchange or financial stock exchangesimply known as “Stock Exchange”, is a virtual market where financial instruments such as actions, bonds and other securities are exchanged: people they buy and sell Virtually actions and bonds of listed companies (such as Spa), as well as resources such as gold or oil. For companies on the market, the main objective is to make sure that the savings of the investors contribute to their growth and the realization of their projects, instead to investors it presses that the value of the securities purchased increases over time, leading them to earn money.
What is the bag and how it works in simple words
We think, for example, of a bazaar where ancient rugs are sold: if many people began to show interest for a carpet, perhaps because they felt that it is rare and of great value, the seller could raise the price, since the question grows. However, if many people want to get rid of it because they heard that the carpet is losing value, the price will drop. This happens because it is based on it Future forecasts: in the hypothesis that the carpet can earn value, more and more people buy it, increase the price; In the event that the value descended, people would sell, lowering The price. The values bag works similarly with the exchange of titles And actions whose prices that rise and descend according to the expectations of the investors. In fact, if the investors should believe that a company will make many profits, they will buy its actions, making it up the price: the increase of positive interest in a famous company in great probability would make the value of its actions rise. On the stock exchange you can buy different types of financial securities:
- Actions: represent the shares of a company. If the company grows, the value of your actions also increases and vice versa.
- Bonds: are loans that are made to a company or to the government that promise to return them increased by an interest.
- Raw materials: oil, gold, which vary in value depending on the request.
- Vrags and cryptocurrencies: as dollar, euro or bitcoin.
Companies who want to sell their actions must be transparent, showing their economic trend. In Italy, the Consob It is the entity that ensures that everything works correctly.
What is and how trading works
The trading It is the sale of titles: as we have said, if a title is required by many people, its price increases; On the contrary, if there is more offer than question, the price drops. This sale takes place through telematic networks online, where orders are performed in real time and in some cases thanks to the help of the financial intermediaries (such as banks, brokers or online platforms). In the stock exchange it is important to remember that the titles can be sold at any time, but being careful, because the prices could vary continuously, and this would lead to the risk of losing money by selling at an unfortunate moment.
The bag in Italy and in the world
Usually the stock markets are bought and sold during opening hours of the market for a series of reasons related to the structure of the financial markets and the need to organize transactions efficiently and orderly: the first financial markets to open are the Asian markets, followed by the European markets and finally by the American ones, but it is important to pay attention to the closing days, holidays and solar time. Until the 70s, the bag in Italy was managed by the state. With the Law 7 June 1974, n. 216the management has passed to Consob, which organizes and controls this large virtual market. Subsequently, with the Law 2 January 1991, n. 1the Borsa Italiana spa He started a privatization process, culminating in the creation of Borsa Italiana Spa, which currently manages the market. In the world, among the most important bags there are the New York Stock Exchange (Nyse) and the Nasdaq Stock Market in the United States, which manage the trading of the actions of global companies such as Apple and Amazon; While we can include the Shanghai Stock Exchange in China for the Asian part; Finally, the Euronext in Europe which is a “pan -European” financial stock exchange, that is, which contains multiple European countries within it.
The main indices
The bag indices They are like “the thermometer” that measures the market trend: when the indexes go up, the market is going well. For example, theS & P 500 In the United States it monitors the trend of the 500 major companies, the index Nasdaq composite It summarizes the trend of the bag in fact Nasdaq including more than three thousand securities, or most of the listed securities, in Europe there is theEuro stoxx 50 which shows the trend of the main 50 European companies.
Beware of risks and scams
Investing in the bag brings multiple risks with them: the prices of securities can climb and descend unpredictablely, like a roulette, for this reason it is important to inquire well before making any investment. We must also be careful of scammers who try to sell false investments, so it is essential to be cautious and pay attention to those who promise easy earnings. With technological evolution, today it is possible to do Online tradingand fortunately the supervision of the authorities, such as Consob, ensures that the rules are respected to guarantee a safe environment for all investors, also in the sale of titles of other nations. However, it should not be forgotten that trading can lead to earnings, but also to losses: therefore it is essential to understand how it works before making investment choices, and it is often recommended contact professionalsabove all, avoiding limiting the management of their money to purchase a single title But managing a professional with a professional diversification of products and services suitable and designed for their finances, thus making investments less risky.
