What is a stock exchange?

What is a stock exchange(market timing)?

The financial market emerges from the need of individuals and organizations to buy and move money. Both surplus and

deficiency of money, merge in the financial market to meet their particular needs. The financing cost is the cost

of money, and financial institutions go about as mediators. Presently, the financial market is comprised of three sub-

markets that demonstration at the same time. At the point when the buy offer of money is for the time being, by and large regarding less

than one year, we are discussing the money market. At the point when these operations are done in longer terms than

referenced, it is within the sight of the capital market. The buy and offer of foreign money establishes the

foreign exchange market.

All operations in the financial market are reported in instruments or securities. The holder of a financial

instrument that has a momentary maturity, can expect much of the time the maturity of the security, and its hazard is

estimated by the maturity that is present moment; The circumstance changes when the financial instrument has a long haul

maturity, for instance 20 years. The hazard to the holder is more prominent to the degree that the term is longer. On the

liquidity side, a transient maturity instrument emerges its liquidity, in that momentary maturity, while

the long haul instrument does not. That is the reason the requirement for a formal instrument that gives liquidity to long-

term securities; this is an auxiliary formal market.(stock market crash) 

In this sense, this formal market is the stock market, which offers opportune liquidity to the capital market. This

auxiliary market is known as a stock exchange. Governments and organizations issuing long haul obligation must have dynamic

stock markets, which give the certification to potential buyers or financial specialists to have the fundamental liquidity to move

these securities previously maturity. Clearly, the nonattendance of stock markets restrains the issuance of open obligation

bonds by governments keen on financing or renegotiating some portion of open spending through the issuance and

position of this sort of securities. Similarly, any transaction that includes a difference in outside obligation in

national obligation or resources requires the presence of a stock market.

Inside the stock market, financier houses and business firms have the capacity of giving liquidity to the

market. Similarly, those nations that have a stock exchange are progressively appealing to financial specialists and

loan bosses than those that don't have these institutions.

We can likewise include that it isn't just a money related truth, yet in addition infers the age of long haul vision of the

organizations that intercede in the stock market. In it they can fund their operations both in the short and long

term and deal with the assets given by the stock market device. So it is a greatly valuable venture device, in

which a country can support itself to help its economy and locate a superior functioning of it.(τεντες προσφορες)