Stock Research

To my mind, first of all I should gain an understanding of types of securities. As far as I know there are many types of securities. And how can I choose some of them with the highest expected return and liquidity and the lowest risks? I want understand why I should buy or sell exactly this or that type of security. So let’s try to investigate…
            In theory there are several groups of securities:

• Equity Securities;
  
• Fixed Income Securities;
  
•  Investment Funds;
  
• Units & Trusts;
  
• Options, Warrants & Rights;
  
• Futures Contracts.
  

So, equity securities: common shares, restricted voting shares, preferred shares, flow-through shares.
As far as I understand securities of this group have practically the same liquidity. As for expected return: the capital gains potential of common shares is usually higher than for preferred shares of the same company. And return on flow-through shares will depend on the potential tax benefits to the investor. Then risks… The most risky securities of this group are flow-through shares, if I’m not mistaken. But all risks of all of them are moderate to high. So among securities of this group I’ll choose common shares. To my mind the balance of return and risks is the best!
The second group: savings bonds, bonds, debentures, treasury bills (T-bills), Guaranteed Investment Certificates (GICs).

If I’m not mistaken investment of money in treasury bills is more profitable. Yes, among securities of this group I will choose exactly treasury bills.
            The third group and investments funds: shares or units of Mutual Funds, shares or units of Closed-End Investment Funds, units of Segregated Funds and shares of Labour-Sponsored Investment Funds.

Then go units and trusts: limited partnership units and trust units.

Did you ever think about such questions as when and where the first stock exchange appeared? It was very interesting for me to try to get to know of its story.
So, I’d like to impart this information to you. Predecessors to modern stock exchange were medieval fairs where people could buy or sell bills of exchange. First it was in France in 12th century. There appeared guys who managed and regulated the debts of agricultural communities on behalf of the banks. We could call them first brokers.
Venetian bankers began to trade in government securities in the middle of the 13th century. Later the Dutch started joint stock companies, which let shareholders invest in business ventures. Then the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange in 1611. It was the first company to issue stocks and bonds. And the Amsterdam Stock Exchange is the oldest stock exchange in the world that exists at present time.
Right up to 1913 the Amsterdam Stock Exchange was the universal exchange where traders sold and bought both goods and seсurities. Just here all methods of security trade (for example, term deals, options, carry-over deals, margin deals, etc.) came into the world.
The technique of security trade was similar to the technique of exchange trade of goods, but insensibly the specific rules of conduct were elaborated. The greatest complexity for traders was the prohibition, which was implemented in 1622, “not to make the air blue”.
At the begining the access to the Amsterdam Stock Exchange was free; any trader had the right to to make bargain with anyone. Conclusion contract finished with the hand shake, which was one of the rules of the stock exchange.
As for stocks, only stocks of the first stock company in the Netherlands (Joint East India Company) circulated at the Stock Exchange.
The stock exchange based in Amsterdam merged on September 22, 2000 with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext, and is now known as Euronext Amsterdam.
The second according to the time of origing was the stock market of Great Britain. Exactly at the England territory made its appearance the first specialised exchange, when in 1773 London brokers rented a specil accommodation for their meetings. Membership at the stock exchange the same way as at the Amsterdam Stock Exchange was free, anyone who wished were able to take part in trade, but he had to pay for it 6 pence per day.

Hi, my name is Lubov, and I am a student of Belarusian State Economic University. At the university we study the theory about stock markets, stock exchange, different types of securities, but…
But in our country the stock market isn’t developed. There is only The Minsk Interbank Currency Exchange in Belarus. There are no news blocks or specialized magazines and newspapers in this field.
That’s why the majority of our students familiarize with exchange trade without practical experience. And I am not an exception. Today with the development of communications facilities and Internet we have a good chance to know more about different world-renowned stock exchange, its functioning and even try to be a real stock gambler.
Therefore I chose this topic to try to extend my knowledge and my experience in this sphere. I will study different theoretical information. Then I will try to open an account on Stock Exchange and to earn money (huge amount, I hope)… at least not to lose too much… I’ll describe all my experience here in this blog.
So, I will try to do my best, and I hope that it will entertain you .
Have fun