
The London Stock Exchange is a marketplace for buying and selling stocks. There are two groups:
- Brokers, who buy and sell for you. Organized by the transaction and receive commissions, which could be 1% with a minimum of about 15 pounds.
- Market makers who buy and sell. They are the difference between the purchase and sale price of the spread (which is usually about 1%).
There is a new trading system, called the Order directed the negotiations (the old system is called negotiation trading engine) SETS are used for high-value business (Stock Exchange Electronic Trading System) by which buyers and sellers are matched automatically. However, the agreements are still in place by stockbrokers.
Some large companies have developed ways to trade their shares at costs below those charged directly by the stockbrokers.
Besides the Commission, the tax ring of 0.5% is payable on purchases.
Adding these together and realize an increase of about 2.5% to reach equilibrium.
The animals
The stock market is full of nicknames. You've seen the deer, but two more fights, animals and bears. Bulls are optimistic and believe stock prices rise, the bears are another matter.
To go with the meat there chips! Blue chips are shares in large companies considered relatively strong, as BP Amoco and Tesco. Then there are the white pieces smaller companies, the sound.
Share prices
The popular stock prices are printed in most daily newspapers and evening and can be found on Ceefax / Teletext and the Internet.
They are generally grouped into sectors, such as tents, electrical engineering. Pricelist actions include some or all of the following:
- Closing yesterday that the price is the middle market, halfway between the buying and selling.
- Increased yesterday / descent, shown as + or the price the previous day.
- The higher prices and the lowest in the last 52 weeks.
- Market total number of shares times current prices, a measure the size of the company.
- Gross dividend yield last full year before taxes as a percentage of current price.
- A / E is price divided by profit (earnings before tax) per share, representing earnings of many years to recoup the price of the shares (in theory, higher the number the greatest growth potential).
Share price indices
Most people have heard of "Footsie". Is The TF / SE (Financial Times / Stock Exchange) 100 Index of the 100 that the 100 largest companies by market capitalization.
The main index is All equity index includes all shares traded on the principal. There is also half of the 250s, with 250 the next, after the top 100, and TechMark index recently introduced for the populations of the new technology.
There is also evidence for the major categories of shares in the market London and foreign populations in Europe, USA, Japan, the Far East.
Solution
Most transactions are now settled electronically through CREST system, which share ownership is registered in the name of a candidate.
The former system using transfer forms and share certificates are always available, but may cost more.
Regulation of electronic procurement is now three days after the date of the transaction. Certificates for deals is another ten days.
Alternative Investment Market
In addition to the main market, there are also goals, the Alternative Investment Market, which deals in shares of companies that are relatively new and small businesses. This is an intermediate step before the core market.
Stock exchange rules are less onerous than for the general market, but this is not in itself an increased risk for the investor.
AIM-listed shares are more volatile, can be difficult to buy and sell, because of limited and are certainly more risky because of the novelty and small businesses. However, significant benefits can be achieved.
Ofex Market
This is a market for trading shares in unlisted companies are those companies not listed in
the principal or AIM and therefore much more risky.
Stockbrokers
Some operate on the basis of a performance to be run in accordance with the instructions. If the notice is also required which will cost more. Contracts are usually arranged by phone or online.
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