The Stockholders are very well aware of the values of the assets owned by the corporation which fluctuates with the business prospects and operations. The corporation in turn creates and designs its share of the stocks to represent their ownership claims to resale and trade. This is virtually known as primary distribution of shares. The primary market is where new issues are first sold through initial public offerings krw exchange.
In the secondary market transaction, it transfers ownership from one person to another without the intervention of the corporation who has originally issued the stocks.
Secondary, share market courses or market trading is supposed to be the most common and popularly accepted. This transaction takes place either through a formally organized “exchange’ or through an “over-the-counter” (OTC) network of dealers and brokers. Here participants include both institutional as well as individual investors.
Operation of Stock Exchange
A stock exchange provides trading facilities for stock brokers to trade in stocks and other trades. It all begins with an exchange proposes to organize a “market” to trade contract with stocks, which is known as the “listing” of the stock. If the company does not meet minimum standard of operation, then the exchanges will not list the stock. On the contrary, an exchange proposes to “delist” a stock when the company fails to do so. You have to go through stock market training in detail; so that you can easily understand various operations go on in this sector.
An exchange is a private organization which either deals with individuals or firms, responsible for the organization and financial integrity of the markets. Those individuals having membership can directly access to the trading and support systems and those without membership should be able to seek a member to trade on his behalf. They also provide members to rent or sell their membership to someone else.
The “market-making” services are an essential feature of any exchange-sponsored market. These market makers are the one who will help to quote a price at which they are willing to buy- a” bid”( price) and a price at which they are willing to sell-an “ask” (price).
The stock exchanges very often assign the market-making duties for
