Forex Education Center And Investment- Stock market,The stock market is a market for trading shares held by the public and related financial instruments (including stock options, stock index trading and forecasts.
There are several stock markets in advanced economies, with the largest markets being in the United States, China, Japan and Europe.
Stock index
Price movements in the market or part of a market are captured in price indices called stock market index, which among others, Standard & Poor's Index, Index of Financial Time. Index as above is usually measured by market capitalization.
Shares strategies
There are two types of trades that involve money or shares that are not owned short sales and purchase limits.
Short Stock Sales
To more clearly see the short sales.
In short selling (short selling), a person selling shares they do not have their own, hoping the price will fall. They eventually have to buy back the shares. Exit the short position by buying back the stock is called "covering a short". Simply, someone other people borrowed shares to be sold at market prices. Then the person is hoped that the share price falls to be bought back at a cheaper price to be returned to its owner (in shares) and pocketing the profits (the difference between the sale price and the purchase price).
Purchase limit
In the purchase limit, a person borrows money to buy stocks and hope the stock can rise in price. Many industrialized countries have laws that require that if the borrowing is based on collateral from other stocks, this loan must be within a certain percentage of the price of other stocks. Other rules include the prohibition of "freeriding" that is, put a message to buy stocks without paying first, and then sell it and use the profits to pay the purchase price in advance.
