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A Guide to the Stocks Exchange

As well as enabling investors and stock brokers to trade stocks, bonds and shares, the stocks exchange also provides commodities, unit trusts and pooled investment products. However, in order for an investor to trade something specific, it must be listed on the exchange. Ordinarily there is a concrete place for record keeping purposes but the actual act of trading is becoming more electronic as time passes.

The stocks exchange, albeit not in its original form, has been going for 100s of years. Even Roman times had a setup that would today be considered as close to the stocks exchange as you can get. In February, 1981 NASDAQ was born, the world's first electronic stock market.

The stocks exchange offers a whole host of benefits to both brokers and investors alike. For one, it gives companies a place to sell shares in their company, which in turn allows capital growth and profit for all concerned. The exchange also gives everyone, from the old-age pensioner to the big-shot investor a chance to receive high-yield returns and ultimately a healthy income by allowing people to invest in stocks, shares, bonds, commodities and more besides.

Perhaps the most important thing the stocks exchange does is give people an idea of how the surrounding economy is faring. Recessions can be predicted by how well the stock market is performing. A fall in share places and a reduction in the worth of commodities is usually a sign the economy is experiencing problems. When companies and people have money to invest, this is reflected by strong and stable growth in the stocks exchange. One of the most influential stocks exchange is the New York exchange, which fights it out with China for being the biggest exchange in the world.

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