Know Important Facts About Stock Market
The stock exchange is a company that organizes the primary and secondary stock market in which company titles are exchanged. These titles are aliquots of the company, that is, when a company is formed with a certain capital, it is divided by shares. If the company is formed with a capital, for example of 100 million pesos and 10,000 shares, each share will have a value of 100 pesos.
The moment a company “goes public” or makes a public offering on the stock market, this company goes public, therefore, not only do shareholders have access to the company’s information, but anyone can know its results and the performance of that company. Therefore, when launching a public offering, the company must provide all the information so that people who may be interested in buying part of the company, that is, shares, can know the conditions in which the company is.
Buy shares on the Stock Market:
When we buy shares in the Stock Market, we have the possibility of selling these shares in the future, if we believe that it is not a profitable company, or we have already made enough profit. Here it is also important that the information is kept public and updated so that the people who want to buy those shares can do so with the most information.
So, it is understood that the stock market works as a large market where stocks are bought and sold every day.
The stock market, exchanging company shares:
The reason why companies want to be listed on the stock market is because the issuance of shares to the market, where investors will buy the shares, allows them to raise new capital, without having to go to ask for bank loans or loans. The new shareholders will closely follow the evolution of the business, as the result of their investment will depend on the results of the company.
When companies issue new shares, they can do so through an IPO (IPO) or a capital increase. These new shares are issued in the primary market, that is, new shares are issued so that investors can subscribe. Once issued and once investors have subscribed and have them in their possession, they can now be traded daily on the secondary market. Indeed, the stock market is a secondary market, since it is where we can negotiate the securities that have already been issued.
Why invest in the stock market?
One of the reasons why investors invest in listed companies is to own such companies, taking part of the profits and growth of the same. It is an alternative to investing in other securities such as fixed income or Boceas.
Shares are purchased through a Stockbroker Company (intermediary or broker) and you only must deposit an amount of money to open a securities account. Once the intermediary’s website is open, we will only have to familiarize ourselves with the interface of the page and buy or sell the shares in our portfolio or portfolio.
The stock market is a market in which companies issue securities or shares to finance themselves, which can be bought by private or institutional agents. As it is a variable income market, there are risks of losing all or part of the investment, so it is a market that requires solid knowledge before entering it.
The price of companies, both up or down, should reflect the good (or bad) performance of the business, if they are able to grow and obtain profits, their shares should
accompany the upward path. On the contrary, if the shares lose money, as they represent a part of the value of the company, they will fall in price. On the website of the Colombian Stock Exchange you can track the price of Colombian companies on the stock market.
What is an action?
It is a variable income title that allows anyone to be the owner of a part of the company that issues the title and become a shareholder and accessing political and economic rights. The investor has to consider investing in stocks in the medium and long term, being able to sell their shares when they want based on the liquidity of the market. After a company has registered its shares in the Bogota Stock Exchange, the sales or purchases made must be made on the Stock Exchange through a Brokerage Company, with the exception of shares in which the value of the transaction is less than ($ 500,000). They are nominative titles.
What is a dividend?
It is the remuneration for the investment granted proportionally to the number of shares they own with resources from the company’s profits during a certain period, which can be granted in money or in shares. Paying dividends to shareholders is decided by the General Assembly of the company of which it is a shareholder, in addition to setting the periodicity and form of payment of the dividend.
What is the intrinsic value of the stock?
This is the name given to the equity or book value. And it is obtained by dividing the total equity between the outstanding shares. Know about money exchange in Abu Dhabi.
Is it expensive or cheap to invest in stocks?
Investing in stocks can be a good (cheap) investment if you decide based on a serious and detailed study regarding managing the risk of assets in order to ensure a good return. To have good advice on how, where and when to invest, it is best to seek advice from specialized market agents, the Stockbrokers, who will give you professional advice to better decide on how to invest the money.