Stock market

The stock market is a market for trading shares held by public companies and related financial instruments (including stock options, trading and stock index forecasting.

There are several stock markets in advanced economies, with the largest market in the United States, China, Japan and Europe.

ndex stock

Main article: stock market index

Price movements in the market or part of the market captured in the so-called price index stock market index, which among others, Index Standard & Poor's, Index Left Financial. Index as above is usually measured by market capitalization.

Strategy

There are two types of trading that involves money or shares that are not owned short sale and purchase limits.

Short Sales

To more clearly see the short sales.

In short selling (short selling), a person selling shares they do not have their own, hoping the price will fall. They eventually had to buy back shares. Out of short positions by buying back shares is called "covering a short". Easy, someone borrowed other people's shares to be sold at market price. Then the person is hoping that the stock's price down so that could be bought back at lower prices to be returned to its owner (in stocks) and pocketing the profits (the difference between selling price and buying price).

Purchase limits

See also: pendongkrakan (finance)

In the purchase limit, a person borrows money to buy stocks and hope the stock price can rise. Many industrial countries have rules that require that lending based on collateral from other stocks, this borrowing must be within certain percentages of other stock prices. Other rules include the prohibition of "freeriding" (penungangan free); ie, put the message to buy shares without paying first, and then sell it and use the profits to pay the purchase price previously.