The Roles of the Stock Market

The stock market is a complement of the banking system which provides credits in the short, medium and long term. From being a simple mechanism of financing, the stock market has now turned into a fundamental strategy instrument at the service of the economic power of the country. The stock market is also considered as an institution that helps to carry out savings liquidity. The confrontation between the orders of buying and selling of shares, expresses the diversity of the opinions that finally materialize in the transactions. The stock market on the other hand, has a social role by assuring the diffusion of the titles of property between multiple investors. The stock market favors movement of capital allowing the money to be placed in share titles that can be easily transferred. The products are mobile and liquid, and can even be used as a means of payment in transactions, like for instance, the participation in the property of a company. In this way the market participates in the restructuring of the capital of societies and in the changes that are brought about in the industrial and commercial structures. All of the shares of a company form what is denominated as an anonymous society S.A. With their acquisition, investors place their money at the disposal of big companies to carry out new profitable projects. But also amongst them there are those who wish to increase their capital, changing their shares according to the occasion and fluctuations the quotations present, in other words, the so called “speculators”.

The stock market is the bidding of future expectations of the behavior of different companies. For many people, the stock market is like a Montecarlo without any music, a game of casino in which one is able to play, in one afternoon, an important sum of money, in the middle of the hustle of the wheels. However for the conscientious speculators, it is not a random game. With the advancing of communications and globalization of the markets, all the stock markets in the world work more intercommunicated now. The happenings in any part of the world are able to have an effect on the stock markets and make the financial world tremble for a moment. Behind all this frenetic movement of the stock market, now and always, there has always been the ambition of power and the desire to make money. This can be done with intelligence, but also with ideas, inventions, secret information, and also taking advantage of the ingenuity of others. That world never rests, and spins around day and night without stopping. After the closing of the New York Stock Market, people crowd in the Stock Market of Tokyo, to then go to Milan, Frankfort and London. And finally when it gets to Paris, there are thousands of North American agents preparing themselves for a new day of confrontation in Wall Street.