Exchange (organized market)
A stock exchange is an organized market for fungible items according to certain rules.
Can be traded as securities ( such as shares and bonds), currencies, certain goods (eg metals and other raw materials ) or derived therefrom rights. The stock market brings the supply and demand - through brokers ( defined during trading hours ) - in market terms together and compares them by ( official ) fix prices ( rates) from. The determination of rates or prices of the traded objects varies continuously according to supply and demand.
- 2.1 exchange Germany
- 2.2 Börsenplatz USA
- 3.1 -ups of individual exchanges
- 3.2 Mergers and acquisitions
- 3.3 Significant Market Events
Background
A stock market is used for temporal and spatial concentration of trade of fungible goods under supervised pricing. Objectives are an increased transparency for securities, the increase of efficiency and market liquidity, reducing transaction costs and protection against tampering. Unlike the so-called off-exchange trading over the counter ( OTC ) Market trading publicly regulatory oversight by government offices (in Germany, the German Federal Financial Supervisory Authority (BaFin ) ) and is controlled by the supervisory bodies of the exchanges.
Due to the ISO 10383 Market Identifier Code each regulated stock market is just like any other trading platform in the world clearly identifiable.
For buyers and sellers of financial products, the exchanges take the important function of the CCP (Central counterparty ).
Origin of the name
The term exchange within the meaning of a purse comes from the medieval Latin bursa ' leather bag, money bag ", which ultimately goes back to ancient Greek βύρσα ( byrsa ), the stripped animal skin or fur called. From Antiquity to the Middle Ages, so a change in meaning from the material to the existing container it can be stated as such. Some historians put the term in connection with byrsa, a wall protected fortress above the port of the ancient city of Carthage in today's Tunisia.
The name of the stock market as a meeting point for traders arose at the time of early European capitalism in the 16th century at the latest. Based in Bruges merchant family van der B ( e) urse, whose coat of arms shows three purse, entertained at their home regularly scheduled business meetings with - especially Italian - merchants. So the Dutch word went borse from the house over to the meeting itself and was adopted in the following years in other European languages , where it is needed today, as French bourse, dän. boron, italian borsa, German Stock Exchange and Others
Exchange types
- Commodity exchanges for the trading of goods, especially imported and domestic agricultural products were the first stock exchange types. Later specialized product markets and specialty markets, who specialized in certain World Trade goods such as precious metals or coffee originated.
- Futures exchanges or futures exchanges, is where settled commodity futures and traded in derivatives.
- Stock exchanges or stock exchanges (the term exchange is often used as a synonym for this particular form of exchanges) for the trading of equities and fixed income securities.
- Currency exchanges for the trading of foreign currencies.
- Further, there are similarly organized exchange markets, such as service exchanges for businesses in the transport and insurance sector, for example, shipping exchanges.
Exchange forms
The classic form of exchange is the trading floor (also called floor trading ). There the brokers meet in person and through close discussions their business. This is done either on own account or on behalf of their customers.
In computer exchanges such as the trading system Xetra a computer program handles the calculations and communication. Here inputs over computer masks are made, the computer system handles the trading and calculates the courses (such as the daily average ). The majority of sales are currently handled worldwide via computerized exchanges, although some brokers even sit on the screen.
The definition of market forms is done often on the basis of traded goods:
- Securities ( Stock Exchange)
- Goods, products and raw materials
- Currency
- Services
- Derivatives
- Electricity ( power exchange - a special type of a futures exchange )
- CO2 and other emissions
- Software
For the handling of delivery and payment between market participants partially non- codified ( uncommitted ) practices have formed. In addition, were in the last time in Germany and instructions of the Federal Financial Supervisory Authority on the minimum requirements in the trading of securities published (eg shares or bonds).
Official stock exchange leaves
Various capital market rules require a publication of certain matters which are relevant to the stock market. Listed companies and securities issuers must publish all notices required by law, in the gazettes of the relevant exchanges.
Mandatory leaves in Germany
The approval of a stock exchange determined in accordance with § 32 para 5 Exchange Act for at least three domestic newspapers with national distribution as a national duty to trade leaves. In addition, they may designate other (regional) market duty leaves.
The Frankfurt Stock Exchange and the German regional stock exchanges have established the following six official stock exchange sheets for the years 2013 and 2014:
Nationwide Exchange trade leaves:
- Börsenzeitung
- Frankfurter Allgemeine Zeitung
- Frankfurter Rundschau
- Handelsblatt
- Süddeutsche Zeitung
- The world
There are numerous other newspapers and magazines, general or regional official stock exchange leaves are, for example:
- Market on Sunday
- Exchange Online
- The shareholder
- The time
- The corporation
- Focus Money
- Welt am Sonntag
- Business Week
Commercial forms
Categorized by types of trade following types can be distinguished from stock exchanges:
- The Market Makers Market,
- The auction market
- And hybrid forms, such as continuous trading combined with auctions.
Earlier forms were:
- A la criée: The purchase and sale contracts entered into by mutual shouts.
By type of settlement of trades:
- Futures and
- Spot transactions.
A further distinction is according to the type of trading:
Trading Hours
In the trading hours on all stock markets, a distinction between the floor trading and electronic trading (such as Xetra). Smaller exchanges have often only on the trading floor. Floor trading begins on the stock exchanges of Frankfurt and Stuttgart at 09:00 local time clock (relative to Germany ), the stock exchanges of Berlin, Dusseldorf and Munich at 08:00 clock, it ends at 20:00 local time clock. The Xetra begins at 9 clock, ending at 17:30 local time clock. The trading hours of the NASDAQ, the largest electronic stock exchange in the U.S., and the NYSE are 9:30 to 16:00 Eastern Standard Time (EST ), which corresponds to 15:30 bis 22:00 clock German time (CET).
The Tokyo Stock Exchange has its trade times from 9:00 bis 11:30 clock clock to 12.30 clock bis 15:00 clock local time ( corresponding to 1:00 bis 3:30 clock clock clock bis 7:00 clock to 4:30 CET).
Important trading centers
Internationally important are
- New York Stock Exchange
- New York Mercantile Exchange
- NASDAQ
- London Stock Exchange
- London Metal Exchange
- Tokyo Stock Exchange
- Shanghai Stock Exchange
- Shenzhen Stock Exchange
- NYSE Euro Next Europe
- Frankfurt Stock Exchange
- Hong Kong Stock Exchange
- Toronto Stock Exchange
- SIX Swiss Exchange
- BM & FBovespa
By market capitalization and trading volume measured is the most important purchasing alliance for the CEE region, the CEE Stock Exchange Group. After the Polish Warsaw Stock Exchange, which is already larger in terms of market capitalization as the Vienna Stock Exchange follows that - considering them independently.
The global stock markets are a daily transaction volume of about 2 trillion U.S. dollars a crucial factor in the world economy.
Exchange Germany
In Germany there are eight securities exchanges, a currency exchange, a securities futures exchange, a commodity futures exchange.
The most important stock exchange in Germany is the Frankfurt Stock Exchange (FWB ), including electronic trading platforms Xetra and Eurex. A large part of stock trading in Germany is handled by the Frankfurt Stock Exchange and Xetra ( March 2008: share of trade with German shares approximately 98 percent, with foreign shares approximately 84 percent). Based on the trade in varieties and bills of exchange in the 16th and 17th century and the beginning of 1820, equity trading, the FWB has since become one of the leading international trading platforms for stocks and bonds. Carriers and operators is the German Börse AG.
In addition, in Germany there are seven other securities exchanges (referred to on Tradegate and European Energy Exchange as regional stock exchanges ). Among these, the Stuttgart Stock Exchange 's (Baden- Württemberg Stock Exchange) with an average share of 34 percent of the order book turnover of the German floor trading second-largest trading center. Of particular importance is the trading of securitized derivatives, such as warrants (trade segment euwax ). On the stock exchanges in Hamburg and Hannover, taking the third place of the German stock exchange under the common carrier and operating company Börse AG, on the other hand, the fund trade occupies a significant position.
After resolution of the Bremen Stock Exchange, 2007, except for the German stock exchange in Frankfurt following exchanges:
- Börse Berlin
- Exchange Dusseldorf
- Hamburg stock exchange (among Hanseatic Stock Exchange under the stock exchanges BÖAG AG)
- Hanover Stock Exchange (Joint stock exchanges AG Hamburg -Hannover )
- Börse München
- Boerse Stuttgart
- Tradegate Exchange, Berlin
- European Energy Exchange, Leipzig
In 1897 there were the following stock exchanges in Germany: Berlin, Wroclaw, Gdansk, Dusseldorf, Elbing, Essen, Frankfurt am Main, Gliwice, Halle, Königsberg, Magdeburg, Memel, Poznan, Szczecin (all Prussia), Munich, Augsburg ( Bavaria ), Leipzig, Dresden, Zwickau, Chemnitz (Saxony ), Stuttgart (Württemberg ), Mannheim (Baden), Mulhouse, Strasbourg ( Alsace- Lorraine), Bremen, Hamburg, Lübeck.
The Nazis were free markets and exchanges critically. 1934, so far 21 German stock exchanges combined to 9 exchanges: Berlin, Breslau, Hanover Stuttgart, Hamburg ( Lübeck and Bremen were in this market at ), Saxon or Middle German Stock Exchange in Leipzig (Dresden, Zwickau, Halle and Chemnitz were in this market on ), the Rhenish -Westphalian market in Dusseldorf ( Essen and Cologne went into this exchange on ), the Rhine - Mainische stock exchange in Frankfurt ( with Mannheim) and the Bavarian Stock Exchange in Munich ( with Augsburg).
Stock Exchange USA
The major stock markets in the U.S., the NYSE Amex (formerly the American Stock Exchange), the Chicago Mercantile Exchange ( CME), the National Association of Securities Dealers Automated Quotations ( NASDAQ), the New York Mercantile Exchange (NYMEX ) and the New York Stock Exchange (NYSE). Oldest American Stock Exchange, the Philadelphia Stock Exchange was founded in 1790.
Historical development
In 12th century France were the courretiers de change operate with the administration and regulation of the debts of agricultural communities on behalf of the banks concerned. Because these men also traded with debts, they can be called the first brokers. After a widespread misconception commodity traders met in the late 13th century in Bruges in the house of a man named Van Beurze from which the Brugse Beurse to have originated in 1409. Until then, it was an informal meeting, but actually had the family Van der Beurze a building in Antwerp where these meetings took place.
Foundations of individual exchanges
The first stock exchange was established in 1531 in Antwerp, Augsburg Exchange 1540 was the first in Germany. The first official stock exchange building in the world was opened in Amsterdam in 1613.
Mergers and acquisitions
Significant Market Events
- In 1929, the most violent crash of Wall Street occurred on " Black Monday ." - Monday, October 28, 1929 The Dow Jones Industrial Average fell from 298.97 to 260.64 points. In October 1929 there have been many black days on Wall Street, but a Black Friday was not there. Friday, October 25, 1929, is often mistakenly referred to as "Black Friday "; However, on the day put the Dow Jones Industrial Average to 1.75 points.
- In 1997, the Asian crisis occurred. The emerging countries held artificially high value of their currency until the system collapsed and the losses in the stock market in Hong Kong amounted to about 40%. The start of the crisis was due to the devaluation of the Thai currency.
- By March 2000 the shares of the so-called New Economy sector rose. From this point burst the " dot-com bubble ", whereby shareholders have lost more than 200 billion euros.
- Due to the ongoing financial crisis from 2007 and several bank failures occurred in September 2008 to significant price slides. In addition to the exposure of individual values sat among others, the Russian stock market several times to trade completely out.