Curious About The American Stock Exchange
Stocks of the largest, most recognized and most traded companies in the American stock exchange are generally listed on the New York Stock Exchange (NYSE).
Communication between the stock exchange and intermediary companies is done electronically. Fiber-optic cable installation of 200 miles (about 320 kilometers) and installation of 8,000 telephone connections were required to be able to report prices and receive orders.
Institutions Regulating The Market
The most intensive stock trading is done within the framework of the National Association of Securities Dealers Automated Quotation (NASDAQ) system. This organization, which is called over-the-counter market and regulates the purchase and sale of 5,240 shares on average, does not operate in a certain place; this is an electronic communications network of stock and bond traders. In addition, the National Association of Stock Agent Brokers, who oversee over-the-counter operations, has the authority to remove companies or intermediaries from the system that are working illegally or who appear to be unable to pay their debts.
The Federal Reserve Board (commonly known as the “FED”), the central bank of the US, detects the lowest collateral rates that determine the amount of money investors need to pay for stock to be purchased. The Board may change these rates.
The Securities and Exchange Commission (SEC), established in 1934, is the most important regulator of stock exchanges in the United States.
Companies offering public stocks, bonds and other securities are required to submit a detailed financial registration document to the SEC. This financial information is also disclosed to the public at the same time. The SEC inspects the transactions in the stock market after the issuance of stocks and provides for the implementation of regulations that prevent them from being played at prices; For this reason, intermediaries, traders on the over-the-counter market and stock exchanges themselves have to register with the SEC.
Credit And Guarantee On American Exchange
With the charm of earning healthy profits, Americans have invested heavily in mutual funds in the 1980s and 1990s. Nowadays, Americans like to buy stocks in this way as they buy many things by credit. Certain investors can buy a “collateralized” share certificate by paying 50 percent advance and owing to their brokers for their survivors. If the stocks received as collateral gain value, these investors may sell them and pay their debts, interest and commission to their broker, and they may also make profits.