The Stock Exchange creates a parameter to compare and analyze the situation of a company with respect to its competence, for this, there are Financial Indexes, it is also intended to guide in a very broad way about the meaning of terms very typical of the Stock Market and identify the main terms used.
With this document is expected to guide university students or anyone who is interested in knowing what the stock market and its interesting behaviour are. The brokers play an important role in the stock market. They offer the best trading account with good limit for the trading to the traders.
• Make known in a simple and practical way how the stock exchanges carry out their mission, as well as their internal functioning in the different areas in which they operate.
• Identify and familiarize ourselves with the terminology used by the people who perform in this area in order to expand our knowledge.
• To assume the knowledge of the stock market as a real opportunity for our companies to be able to acquire liquidity and to enter in the future with solid knowledge.
What is the stock exchange?
The stock exchange is a private entity incorporated as a public limited company, which is officially regulated, where operations are carried out for the purchase and sale of debentures, bonds, investment certificates and other Securities inscribed on the stock exchange, where the plaintiffs are located and securities dealers negotiating through their stockbrokers.
They are important because through them there is a direct encounter between people who have money and want to invest it, called investors, and sellers of securities that can be the investors themselves or companies that decide to sell securities in exchange for money (capital ) either to develop projects, for working capital or to refinance debts.
The path to the Stock Exchange
The entry on the Stock Exchange is an award for business management. The formal request for admission must be made to the governing bodies of the stock exchanges in which you wish to be listed. The companies also have to undergo a process of analysis and verification by the National Securities Market Commission.
Admission requires the provision of various legal documents, an audit of accounts and the preparation of an information leaflet on the operation.
From an economic point of view, the law requires the applicant company to have a capital stock of at least 200 million pesetas, without accounting for the number of shares that reach or exceed 25% of the capital.
The company that aspires to be listed must have a minimum of one hundred shareholders with shares of less than 25% of the capital while its profits for the last two years must be enough to distribute a dividend of 6% of the paid-in capital.
This last requirement is extended in certain cases: when a company justifies obtaining benefits in subsequent years, or when the issuing entity is in the process of restructuring or has been constituted as a result of a merger, spin-off or privatization operation.