Equity market

The equity market is the market where securities are sold and purchased. In other words the equity market is a capital market. The equity market supplies capital reproduction. The equity market can be primary or secondary. The primary equity market represents the market of the new manufactured securities. The secondary equity market represents a capital market when shares of primary equity market can be resold.

The first equity markets have begun to occur in 13 century on which note brokering was manufactured. In 15 century stock exchanges have started to occur. Now any person having access to the Internet and a certain amount of money can begin trade on equity market. For this purpose it is enough to position the special software and to open the bill at the broker company. At stable growth of equity market to earn money at stock exchange it is simple - to take shares of blue chips enough and to wait, while they will rise in price. But when in the market there are shocks and the equity market falls - professionalism for work on equity market here is already necessary. During the droop moments on equity market investors buy shares the perspective companies on a floor price and such strategy yields the big money in the future when the equity market will be reduced and again will grow.

On a share and bond capital market address in the paperless form, i.e. without the paper document - as under securities there are many bargains, securities constantly change holders and each time to renew pieces of paper very difficult. Securities on equity market are stored on separate accounts "depot" and for change of the holder of a security enough in electronic form to change the data about the new placement owner.

On equity market securities lead as though an independent life and irrespective of real assets. Securities at exchanges represent as though a cost estimate of potential of this or that company. The capital market carries out also the controlling function, concerning investments. Money for a capital market flows in those branches where their shortage is felt and leaves branches where surplus of the capital is observed.

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