The Stock Market, Wall Street.

The New York Stock Exchange is by far the the world's largest stock exchange by market capitalization its listed companies at US$14.242 trillion as of Dec 2011.

The NYSE floor is placed at 11 Wall Street, is composed of four rooms to make easier the trading. The main building is placed at 18 Broad Street, between the corners of Wall Street and Exchange place and was designated a National Historic Landmark.  

Who works in the stock exchange receives the name of broker.

What a broker does? Well,  a broker is the person or business intermediary between a purchaser and a seller, and he is paid for it with a commission. A well as this person or business takes charge of advise about matters related to the deal. A broker in the United States must pass two licenses examination  from the National Association of Security Dealers.

Nowadays, the New York Stock Exchange works through computers which process the information so fast, they cross information of bid and ask.  What we saw on films or TV shows, people shouting, talking on the phone, it’s something of the past, because now all the operations are carried out by computers. 

The stock market has a typical vocabulary, we will see some of these words:

-                       -Junk/high yield bounds: they are bound with a really high risk and high return. This is one of the reasons of the actual financial crisis.

-                     - Bear market/bearish:  this gives name a period of continuous falling down of the stock prices.

-                   -  Bull market/bullish: it is the opposite of I have explained previously (bear market).

And this is the famous bull of Wall Street.

 -    IPO (Initial Price Offer):  It is the first price of the any new stock that starts in the stock market.

-           Dividend/ yield: it’s a fixed amount of money that a company gives per share.

-        Commodities: This is a synonym for goods, and the most important market is the London commodities.

-        PER (Price Earnings Ratio) is the result of a division between the price of a stock and the earnings per sh

are. It is a very useful information about a company.

- Chart is the graphic where appears the price of the stock along the time.

- Shares/stock/equity, these are stock’s synonyms.

- Shareholders, they are the owner of the stocks.

- Target price, is the estimated price of a stock in a determined time.

- Fund, they are companies in charge of managing the money.

- Index, is the generic name of all the stocks markets.

- Exchange, is the place in which options, futures, and shares in stocks, bonds, indexes, and commodities are saled.

- Margin: A margin account lets a person borrow money from a broker to purchase securities. The difference between the amount of the loan, and the price of the securities, is the margin.

These words are used every day in the financial world. And a very famous proverb for all these world is the trend is your friend, which means what you have to do what everybody does, if you follow the trend in market you possibly will be rich, but you have to know how play with money.

http://beginnersinvest.about.com/od/undervaluedovervalued/a/wall-street-vocabulary.htm http://es.wikipedia.org/wiki/Bolsa_de_Nueva_York http://en.wikipedia.org/wiki/New_York_Stock_Exchange http://www.investopedia.com/university/broker/broker.asp#axzz2FaKGVFlZ http://es.wikipedia.org/wiki/Agente_(econom%C3%ADa)