What is stock exchange? People who often hear the words stock market or investments in the news know that stock exchange (SE) is the second half of the famous four-letters that bring millionaires and millions to mind: NYSE. With the recent prominence of Wall Street in political circles, people are beginning to realize it’s not just millionaires crediting Nasdaq and NYSE. If there’s any place where millionaires and paupers are made in the blink of an eye, it’s not a Vegas casino (although we all know that’s as good a place as any); it’s the stock exchange.
Understanding what is stock exchange and how it works lies in understanding the role stock brokers play in the various markets. Unlike your regular department stores, the assortment of goods – stock, bonds, and currencies – traded in the various markets for financial instruments have prices that are constantly fluctuating. News updates, political statements, expert opinions – these, among many other things – cause movements in the prices quoted in a stock exchange. And much like any other person doing business in any market, an investor wants to make profits. Understanding what is stock exchange means you know you make money when you selling your investments at a price higher than what you paid for it.
Although stock brokers are simply the middle men that carry out the actual buying and selling on behalf of investors, they’re in a unique position to provide sound investment advice to these people. They deal directly with the goods in question and their exposure to the situations in the particular stock exchange they work in makes them excellent financial advisors. However, if you head a stock broker’s advice, you should know that it can go either way – you can become a millionaire or a pauper. Unless it’s an automated one like the Forex Tracer, stock brokers are humans and are prone to errors in judgment.
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