Dictionary

Meaning of Stock Market

Stock market is an adjective that comes from bursa, a Latin term that means “bag”. The stock market, therefore, is that linked to the stock market, understanding this concept as the financial institution that allows buying and / or selling shares.

In this sense, it is possible to speak of equity shares, securities, trading, stockbrokers, etc. Everything that is related to the stock market can be qualified with this adjective.

For example: “My father is a stockbroker: he is always aware of the prices”, “A study affirms that the stock market operations rose 18% in the last year”, “The government announced that it is studying new controls on the stock traders”.

Among the most common stock market operations are the sale and purchase of bonds issued by the State or by private companies; of shares of those companies that are listed on the stock exchange; and other instruments that allow the development of investments.

Stock trading allows a person to convert their savings into investments, hoping to receive a profit from the dividends granted by the securities they buy. Companies, for their part, are listed on the stock market so that their shares are bought by investors, thus obtaining significant financial resources. The State finally can also generate resources to offer the bonds and other instruments in the stock market.

According to abbreviationfinder, the stock market operations, in any case, are not well seen by all sectors of the economic and political life of a country. There are those who call for taxes to be applied to these types of activities since they encourage speculation and do not encourage production. Therefore, the resources that are generated are usually reinvested in new stock market operations, without the general society benefiting.

Tips to start investing in the stock market successfully

1- Open a securities account

Although it may seem logical, many people who enter the world of trading for the first time do not know how securities accounts work or how to go about opening one; Furthermore, there is usually not much useful information about it. Once we have chosen the securities agency, or the bank, in which we want to open a securities account, it is advisable to pay special attention to commissions, especially custody fees.

2- Choose the market

The first point is related to the market in which we want to operate, since the commissions are different for each one and this has a considerable impact on the profitability that we can obtain.

3- Decide the amount to invest

This is a question that most people share when deciding to trade for the first time. And the answer is different in each case, since the best advice is to invest as much as we are willing to lose. It should be mentioned that although the stock market is not a game of chance, it is not possible to have absolute control either and that is why it is necessary to remember at every step that we can lose everything from one second to another.

4- Develop a strategy

Given that what is at stake in the stock market is money, it is very important to be clear about where to invest, what you intend to get in return, in what maximum period, what to do if you lose everything and how to detect moments of risk, as well as the ideal ones to invest more. Simply put, the stock market is not an environment for the lazy.

5- Take advantage of black swans

The phenomenon of black swans is related to those unforeseen events that generate a great impact but that cannot be easily appreciated at the moment. For example, starting from a news item or a rumor, an investor may make a risky decision, confident that not everyone will be aware of the door that seems to open in front of them.

Stock Market