Forex and Stock Markets
Forex and stock market (shares and securities’ market) are closely related, but differ in principles of executed operations. Forex suggests the currency trading, unlike stock market that deals with the shares and obligations. The biggest stock exchanges are in New York, London, and Tokyo. The main difference between Forex and stock market is the volume of involved money. To buy shares on the stock market, you should have a capital totaling $10,000-100.000. The trade on the stock market is slow and steady, while on Forex the trader can gain or lose during rather small period of time. Some traders after accumulating a significant capital on Forex, move to the stock market.
The stock exchange, in its turn, is comprised of primary and secondary markets. The primary one plays a key role in a country’s market economy, because the economic growth rate and efficiency entirely depend on it. The primary market deals with the trading new securities, which buyer can be either individual or institutional (investment fund, insurance companies, etc.) Issuer sells his stocks and bonds directly to the buyer or through an intermediary.
The secondary market, which consists of the curb market and stock exchanges, is a market where the investors purchase securities or assets from other investors. Unlike the primary market, the secondary one does not influence the investment volume of a country . The main participants of the secondary market are speculators, who buy assets at a low price due to sell them at a higher price.
Shares on the stock market are traded in different directions. The shares are bought to get profit form the rates difference or to receive dividends, and so on. Despite the safety and tranquility of the stock exchange, before the session opening the experts analyze the market in order to reduce risk of the investing.
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