STOCK MARKET PROJECT RESEARCH
The Stock Market operates in large cities such as, New York City, Boston, Philadelphia, Chicago, Denver, Los Angeles, and San Francisco. The Stock Market also operates in the major commercial centers of the world. The most important stocks are the New York Stock Exchange (NYSE), and the American Stock Exchange (ASE). The Midwest Stock Exchange in Chicago and the Pacific Coast Stock Exchange in San Francisco and Los Angeles is open Monday through Friday. The New York Stock Exchange is required in connection with the original application for listing stocks on the New York Stock Exchange: the title of the company, status of the security under the Federal Securities Act, history and business, description of properties, affiliated companies, management, labor relations, dividend record capitalization warrants conversation rights or other commandments funded debt pending litigation of a material nature, accounting policies and financial statements. New York Stock Exchange transactions may be made in three different ways: cash, regular, or on a limited option to seller as to the time of delivery or acceptance. Cash transactions means that a stock is bought, delivered, and paid for the same day. Regular transaction is the stock is bought and must be paid for and delivered by noon on the fifth day following a full business day. Ninety five percent of all transactions are regular.
Stocks provide the means for a corporation to raise money. A stock in a business is a certificate that represents shares of ownership in a corporation. Certificates entitle them to shares in the profits of the company, which are paid out at intervals, in the form of dividends. Stocks are generally negotiable. Stockholders have the right to assign or transfer their shares to another individual. There are two main categories of stocks: common and preferred. Earning or gaining can be greater with common than preferred. Holders of common stock have the last claim of the earnings and assets of a company can receive dividends only at the discretion of the company’s board of directors, after all other claims on profits have been satisfied. Dividends and equality conferred by common stocks have no dollar value. It benefits more from a company’s prosperity or loses more from a company’s adversity than do holders of preferred stocks. There are two types of preferred stocks: cumulative and protected. There are also two stock categories: redeemable and convertible. A stock book is where the purchasers’ name is usually entered in which the purchasers are stockholders of record. Some companies are privately owned and some are publicly owned. A company may sell shares of its company, this buys stock in a company, as a result they become part owner of the company. This person is a shareholder in the company. Owning stock gives the shareholder a right to vote about decisions concerning the company. If a person or group of people own more than fifty percent (or half) of a company, they are called majority shareholders. Bonds are evidence of loans; stocks are evidence of ownership. Bonds take precedence over all types of stock; therefore they are safer investments than stocks, especially in times of deflation. Stocks are better investments during inflation because they represent ownership of assets that will probably rise in value faster than general prices.