The Stock Market is considered an important channel to Finance Investment because it represents a market for the accumulation of capital and therefore its ability to recruit capital, as is the case in other fields of investment, on the one hand close and association and important market economics on the other hand, along with the emergence of the phenomenon of calendar exchange rates and exchange rates interest rates on the international level, which has led in many cases to the absence of any impediments to capital flows Authority credit tools and saving a variety of foreign currencies, especially since the financial markets evolution came in the wake of economic developments and breadth of cases of consumer and investment spending, where institutions to employ savings appeared in different productive economic fields, as a link between the various individuals and institutions that between savings and productive projects in the economy.
Structure of the deal in the international securities markets.
Investing in the stock market of the key investment areas requiring setting the foundations for the success of investment operations in this area, so as to achieve a variety of securities in the market without sacrificing the proceeds expected from such a successful investment choice. Thus, the investment decision in this market depends on a set of data including:
1. The amount of return: which reflects the size of the gains or losses earned by the investor which is often expressed as a percentage of capital invested.
2. degree of risk: The likelihood of potential risks, or what is called the element of uncertainty (Uncertainty) in the field of project evaluation, as the shares that carry returns or similar returns are not necessarily carry the same risk rates, which the investor pays for an assessment of the access to the cases of the budget between profit rates and the resulting risks and form in which it makes its decision likely to be correct.
3. Time: The purchase of securities limited financial time period whereby determined a time when investor equity and bonds maintained, since the time factor associated company type and look investor expectations for their growth and development, and so can determine the basic controllers in the stock market, including the following:
*. Interest rate: affects different interest rate adversely on stock prices, since rising interest rates lead to lower operations dealing in financial markets, and vice versa, the lower interest rates works to promote the deal in the financial markets, and the measurement of the degree of those effects are using the change rates in assets and liabilities that are affected by these changes, or oscillations.
*. Liquidity: It is the existing cash available at the investor or the bank or financial institution that will ensure dam needs so as not to be forced to sell securities in his possession, which might cause the loss is sometimes liquidity measure to identify the proportion of financial investments to deposits or assets.
*. Credit: This highlights the role of master of banks and financial institutions in cases of non-issuer of securities ability to repay in the prescribed, especially when different balance between loans and credit losses and the percentage of loans in times.
*. Capital: The case of the ability or inability to cover securities Exporting especially when there are losses; which requires attention to this element and control the property rights enjoyed by the bank or financial institution or an individual investor.
This needs an investor who wants to contest the deal in the international financial markets to a range of information would give him the opportunity to decide with full knowledge of the circumstances resulting from what his decisions. That information, which can be divided into what is a former investment decision, and what is later to him, particularly those that give the investor appreciation of one’s choice and what does his choice of securities or bonds securities including information that create a follow-up to the elements of his wallet, and the issue of bulletins a summary of the characteristics of stocks and bonds at hand, and the conditions of issuing bodies, as well as underwriting the same conditions, but it is often characterized this market (the international market for securities) lack of clarity of what investors and find out what they take from the positions and follow the Market even through the available sources of information, especially for to the joint financial institutions, major banks and investment funds, which began to play a role in the stock and international bond market does not disclose only rarely and vaguely about the policy of the investment, which often rely on intuition element and the impact of psychological factors, along with surface handle the available information and, accordingly, the question of dealing in these markets depends on two things:
First: the importance of the role played by securities traders and brokerage houses on investors’ guide and advise them and help them in how to streamline and make their decisions.
The second is the importance of working to increase investors’ awareness of what they are doing or providing it and the need to increase their familiarity with various aspects of the market that they want to participate or dealing in them.
As the international stock market is considered an independent institution governed by different technical conditions as the economic situation of the company or even the economic situation as a whole does not necessarily reflect trends Price-as is the Stock market – may have put the company well as well as the economic situation is solid, but the price could move to landing, and vice versa, trading rotating in prices may be affected by the events of a technical or psychological or emotional unforeseen. Hence it emerged sections of stocks and bonds in the financial market, the category which respond to the movement of the market and slowly, the other category is moving more effectively in such circumstances; technical Stock market requires determining the best times to enter the market, which shows the difference between a successful investor and the investor 100k factory revolution is successful.
The mechanism of dealing in international stock markets.
Issued securities either denominated in real currencies in circulation in the State, and this is often either in monetary units “mathematical” or “vehicle” does not already traded, but used only as units of measurement, because of its real currency advantages to avoid what would happen to the currency fluctuations may detrimental to the interests of the dealers in the financial market are dealt in these markets, according to the indicators by which to identify trends practiced by investors and speculators and financial analysts in the financial markets … namely:
* Economic indicators: stock prices and bond movement affected in the financial market and economic indicators, which in turn reflects the health of speculation and expectations in the market, such as the case of the announcement of a huge financial budget or ambitious investment approach, which means the expectation of rising prices in general, and to inject additional funds the market would be reflected on the situation and conditions of the securities on the stock exchange in the newly industrialized countries in the path of growth, and so the adoption of industrial production, or gross national income statistics or disposable indicators in the stock markets in developed countries.
* Monetary and financial indicators: one of the most important indicators to determine price trends in the financial market as the higher interest rates lead to investors geared towards deposit in the banks, and do sell their shares in the market standing, supply and prices drop while moving funds into the financial market in the case of falling prices interest in banks or transferred to the bond market. The increase in money supply, whether in the economies of emerging countries in the way of growth or advanced lead to higher stock prices, otherwise the decline in money supply growth rates will work to lower stock prices, and therefore the central bank intervention in the expansion of the money supply or reduce it reflected a shift rates interest upward or downward and then the impact on price trends in the financial market accordingly.
* Trading volume in the stock market: The number of shares traded in the stock market and bond market determines the strength and expectations rise or decline in the future as the density of volume means the investor optimism and motivation to invest in the market and the consequent rise in prices as a result. If the market has made progress or not an offer is accompanied by heavy trading, then prices remain unchanged or trending downward because of the relative stagnation of the post, and thus investors are directed towards the liquidation of their investments where prices continue to go down directions. From here we can see that the trading density and price increases are generating demand, which followed for the successive increases after that … demand if not the only one that leads to increased prices in the financial markets … Thus, these characteristics of the Stock Market is different from what it is in the investment markets and consumer goods markets, a process that reflects the effectiveness of the investment mechanism in those markets, and of the following:
* Individual nature of these markets, which makes the investor faces strong parties in the side version, marketing representative of public bodies and major companies, which have the ability to go into the international market.
* It is difficult to be aware of investor familiar enough to the prevailing conditions in the markets in general, as well as the status of bodies in which it invests its leaves often depends investor in this regard either on a few general information or tips and guidelines traffickers securities. That if we know that the majority of investors Trading to specialist services because of these imposed conditions and fees are rarely linked to the quality of the performance and effectiveness.
* Require securities campaign and private bondholders to tighten protection is not a risk in normal market arising from the change in interest rates, exchange rates or the stock of credit, but the risks arising from the failure of debtors (especially in the bond market) on the performance of their obligations, and of the difficulty in obtaining foreign currency when the payment or late payment of benefits and premiums, or the imposition of exchange controls or taxes, such as taxes on transfers and so on.