Concept in Definition ABC

The bag In addition to making the hair stand on end and being one of the issues that has a bad effect to bring to most operators stock exchanges of the world, the presidents of the countries, the economists, the inhabitants of this globalized world, after the crisis financial traversing the United States, is a private organization in which its members and on behalf of the mandate they receive from their clients, carry out the purchase and sale of securities such as shares of companies or corporations, public and private bonds, titles and certificates, among others.

Not all companies, however, can do what is known as "going public." Those that sell their shares in these are generally powerful companies, with good financial returns and with a considerable amount of capital. For example, to put a reference case, the mega corporation that develops and manages the social network Facebook, only in mid-2012 began to sell shares on the US stock market, due to the millions of dollars it registers in concept of

income (advertising, mainly). Another social network, Twitter, is not yet on the stock markets, but it is expected to make its (triumphant?) Entry on the stock exchanges in the first months of 2013.

The origin of the name comes from the coat of arms that the family Van Der Buerse, represented by three bags of silver, which he used to organize in his house in the city of Bruges, meetings of type trade already in the thirteenth century, which also gives us an idea of ​​the chronological time from which it has been put into practice. Although, the first official bag was created in 1460 in the city of Antwerp and the second, that of Amsterdam, dates back to the seventeenth century, remaining as the most important for a long time until the arrival of the London Stock Exchange, the London Stock Exchange, founded in 1801. Meanwhile, until the emergence of the crisis, the one in New York had been occupying the number one position on the stock markets in the world.

However, despite the relative “age” of the stock exchanges, the financial market and speculative activity, it began to “dominate” the the world in a much bloodier way from the '70s, after the oil crisis and the decline of the hitherto successful system capitalist. While the capitalism did not fall (nor will it fall at least in the medium term) the crisis of rising oil prices generated a break in the stable and continued growth of European societies after the end of the Second War World. "The glorious thirty years" from 1945 to 1975 were overshadowed by financial crises, and an "adjustment" was necessary. The classic "speculators" who made the rise and fall of prices in stocks and titles their main activity arose in droves. Activity that, by the way, made more than one rich and millionaire, like the well-known men of the “Goldman Sachs”, all of them dedicated exclusively to financial speculation.

The good performance of these, in the long term, always tends to strengthen the capital market and the economies of the countries where they reside, that is why the American example is again relevant, so graphic these days, which allows us to see how the collapse of these, is leading the country to one of the most serious economic recessions in its history.

Its most important functions include: channeling savings towards investment, granting liquidity to investment and contributing to the efficient allocation of resources.

The negotiations of the securities that are carried out in the different Stock Exchanges of the world, although the denomination according to the country, they are carried out through the stock broker and are mostly regulated by the states nationals.

Topics on the Stock Market