| Young people are becoming more ambitious | | | | other improvements. Expansions could go from new |
| nowadays. With the onset of new technology and | | | | products, put up branches in more locations or |
| higher living standards, the younger generation is now | | | | venture into other line of business that might widen |
| also thinking about investing in the stock exchange | | | | the range of business. When business become |
| market. Likewise, older men are venturing into stock | | | | profitable stock investors may be able to earn from |
| exchange as preparation for retirement. | | | | capital gains, how much still depends on stock prices |
| What is the stock exchange? | | | | and dividends. |
| The exchange is where stocks and securities are | | | | Stock exchange is also advantageous to small |
| being traded among traders and stock brokers. | | | | investors as they could invest in already big |
| There used to be a specific location where | | | | companies. Small investors can start with as little as |
| investment records are kept and trade was done. | | | | they can and eventually, with more expertise in |
| However nowadays, trade can already be done | | | | trade, go up the ladder to becoming a huge investor |
| through electronic technology which saves more time | | | | in big corporations. |
| and fees for transactions. | | | | How to get listed in the exchange? |
| Unlike common markets where money and | | | | Stock exchanges have different listing requirements. |
| commodities are exchanged, the exchange includes | | | | There must be a minimum number and cost of |
| other fiscal products and security deals like company | | | | shares. Capital and/or company's profit for a certain |
| shares, fiscal bonds, unit trusts, stocks, contracts and | | | | number of years is also required. An example is for |
| derivatives to name some. | | | | the New York Stock Exchange: A company must |
| What is the stock exchange procedure? | | | | issue a million shares of stock worth $100 million at |
| Before any stock or security can be traded, it has to | | | | least and must have a profit of more than $10 million |
| be listed in the index first. After that, a new stock or | | | | for the last three years. |
| security will be issued in the primary market. The | | | | How to manage investments? |
| system used to sell new issues is called underwriting | | | | Managing investments is not an easy job. Thorough |
| and the selling of the new issues is called as the Initial | | | | research on the movement of market trends should |
| Public Offering (IPO). | | | | be done. Buying and selling strategies are also |
| All new issues go through initial selling in the primary | | | | employed as well as timing is crucial. There is no one |
| market. After which it goes to the secondary | | | | way to manage investments in the stock exchange. |
| market. Buying and selling of stocks and other | | | | It will largely depend on several types of accounts |
| financial products happens in the secondary market. | | | | and personal goals. It is recommended to ask for |
| What are the advantages of stock exchange? | | | | advice from stock brokers especially those who are |
| The stock exchange is more vital to the businessmen | | | | quite beginners in investing. Not to say that experts |
| owning companies and corporations. Opening a | | | | do not need advice. It is vital to understand that wise |
| company for public investment allows more capital to | | | | decision-making is needed in investments in order to |
| go in the company in order to allow expansions and | | | | gain more profit than losses. |