Explain the roles of different participants in the stock market


Stocks are also termed as shares. The buying, selling, and issuing of shares are done in the share market. These financing actions are processed via stock exchanges and OTC. In a country, more than one stock exchange is available for trading with shares. The stock market has two divisions:

  • Primary market and
  • Secondary market

Primary market: A primary market is a place where companies release new safety to collect the fund. The companies sell their share in order to gather capital from the public. One who issues the share is termed as issuer and this whole process of issuing is termed as Initial public offer.

Secondary Market: Stock exchange also trades with the help of listing shares. The safeties that issue at the primary market are sold on the stock exchange.

In a company, fractional ownership is mentioned by the stocks or equities, and the place where investors di an operational activity of buying, selling, and issuing of stocks is a stock market. You can easily understand more about the share industry on the internet. Many websites provide information about stocks, shares to the users. To know all the latest happening in the stock market you can log in to https://www.dailyreckoning.com.au/ his web address. In the stock market, many people are playing different roles according to their work. in the stock market, many people are associated with long-term known as long-term investors. Those who invest in a small period in the stock market are called short-term traders. So the variant kinds of players are linked with the share market. Everybody has an exclusive role but many roles are tangled with each other and to run the market effectively they work together.

1. Share brokers: These are the licensing authorities who can buy and sell the securities in aid of the investors. They played a big role in the share market. Their role between the stock exchange and investors is like an intermediate. They sell and buy the shares on behalf of an investor.

2. Portfolio Managers: They do a job of investment portfolios or combinations of securities for their clients. Portfolio managers take the decision of buying and selling for portfolios.

3. Investment brokers: They look after the listing method in submission with the governing needs of the share market.

4. Market Manager: They are the broker-dealer who prepares the list of shares along with providing the facility of shares trading by posting bid and ask for prices.

Conclusion: Each industry is created after defining variant roles of people working in it. Similarly, the Share market is generated when different types of players get associated with it and each of them playing a unique role.

Leave a Reply

Your email address will not be published. Required fields are marked *