Stock Markets Defined
What are stock markets?
Stock markets are market places where people buy and sell bonds, equity, securities stocks and shares. They are spread throughout the world. The main ones being, probably London and Wall street in the USA and of course Tokyo in Japan.
What is the London Stock Exchange (LSE)?
This is the UK's largest trading market. It houses the administration staff, which are responsible for the policing and the policy making and oversee the marketing of the stocks and share markets. This is a leading player in the world markets and many companies from around the world come to the stock exchange in the UK to raise monies.
What is a share?
A share is a holding in a listed company. There are various forms of shares ranging from ordinary to ordinary non-voting. If you hold a share in a voting type of share that gives you the right to attend an annual general meeting to receive information from the company, and to vote at a meeting.
What is a share price?
A share price, in a listed company, is the buying and selling price for that company at a specific time of day. For example, if you had a company called XY Zed, trading at 98 to 100p, you would buy at 100p. You would sell at 98p. The difference is called the share spread.
What is share capital?
This refers to the total number of shares available in a company for purchase.
What is a listed company?
A listed company is a company that has its shares traded and registered on a specific stock market. For instance, Marks and Spencer is a listed company. This is a company with a minimum of £50,000 share capital available for general purchase.
What is equity?
Equity, in stock exchange terms, normally refers to the shares that are traded within a company.
What is the FTSE 100?
The FTSE 100, which varies from quarter to quarter, is based upon the top 100 companies, in capitalization terms, traded on the stock market. So, to give you an example, BP would be regarded as a FTSE 100 member. Within the FTSE 100, at any given time there will be shares that rise and shares that fall. The index, as it is called, will indicate to the general public by going up, whether the overall market is rising or by going down, whether the overall market is falling.
What is the FTSE All-Share?
The All-Share Index is an index of most companies traded on a stock market and indicates to the individual if the general market as a whole is proceeding upwards or trading downwards on one given day.
What is AIM?
AIM is the Alternative Investment Market, which was set up a number of years ago to give companies a cheaper option to obtain a quotation and to get their shares to the marketplace. This is regarded as the secondary market and normally attracts companies who are slightly speculative mix, for instance: Oxus Gold.