The Exchange is an independent institution that serves as a link between companies and investors.
Those companies wishing to open their capital to public offering, approach to this institution after completing the requirements to open its capital to the general public are able to deliver part of its capital stock in exchange for money that will be used to different purposes within the company, either for new ventures, financing, cancellation of debt, expansion, modernization, etc..
Let's take a simple example to clarify the picture in a practical way. Suppose you own a company and invested 10,000 pesos to build and operate it. Well, now you need money for a new project in the amount of 3,000 pesos but does not have the capital.
Your next step to get this amount would provide 30% of your company in exchange for money. You could go to such offer by the public offering regime, 3,000 shares of company value of 1 peso each.
So here is a simple scenario: you got the money to invest and investors took in exchange for company stock because they believe in its success. If we are to see it from the other side of the counter, we see that the investor now has money instead of shares.
Why someone would decide to change money for shares?. Simple. Who opted for this change assessed the possibilities that exist with respect to the company and concluded that win market share from its competitors, thereby increasing sales, generate more profit and therefore the company could be worth at year end 12,000 pesos.
According to this reasoning and perception of the investor met a few months after investing their money in stocks that cost 1 peso, the investor would have mentioned those same shares whose value would be of 1.20 pesos each, which left a 20% gain by seeing the possibility of future growth.
Every day in our market million shares change hands and this is due to the assessment that investors make each company. While for some it is time to stop participating in a project, others just beginning to be profitable. This allows the free play of supply and demand of shares and is basically what runs the market.
If a large number of investors note that certain company will perform better in their next balance, surely there will be much demand for shares and in turn short supply, which will force those who wish to purchase to pay a premium price for them. Conversely, when a company shows signs of demotion, surely the shareholders decide it's time to take the money trying to sell, in this case will be greater supply than demand so prices tend to fall.
This game is one that allows the daily movement of prices and is based purely on supply and demand. Simple as that.
If we clear what the situation and the sense to invest in a stock market and if at this point, the issue sparked his interest, we invite you to continue getting to know this interesting world from our explanations.
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- indicator forex 2012
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- mtf has bar
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Those companies wishing to open their capital to public offering, approach to this institution after completing the requirements to open its capital to the general public are able to deliver part of its capital stock in exchange for money that will be used to different purposes within the company, either for new ventures, financing, cancellation of debt, expansion, modernization, etc..
Let's take a simple example to clarify the picture in a practical way. Suppose you own a company and invested 10,000 pesos to build and operate it. Well, now you need money for a new project in the amount of 3,000 pesos but does not have the capital.
Your next step to get this amount would provide 30% of your company in exchange for money. You could go to such offer by the public offering regime, 3,000 shares of company value of 1 peso each.
So here is a simple scenario: you got the money to invest and investors took in exchange for company stock because they believe in its success. If we are to see it from the other side of the counter, we see that the investor now has money instead of shares.
Why someone would decide to change money for shares?. Simple. Who opted for this change assessed the possibilities that exist with respect to the company and concluded that win market share from its competitors, thereby increasing sales, generate more profit and therefore the company could be worth at year end 12,000 pesos.
According to this reasoning and perception of the investor met a few months after investing their money in stocks that cost 1 peso, the investor would have mentioned those same shares whose value would be of 1.20 pesos each, which left a 20% gain by seeing the possibility of future growth.
Every day in our market million shares change hands and this is due to the assessment that investors make each company. While for some it is time to stop participating in a project, others just beginning to be profitable. This allows the free play of supply and demand of shares and is basically what runs the market.
If a large number of investors note that certain company will perform better in their next balance, surely there will be much demand for shares and in turn short supply, which will force those who wish to purchase to pay a premium price for them. Conversely, when a company shows signs of demotion, surely the shareholders decide it's time to take the money trying to sell, in this case will be greater supply than demand so prices tend to fall.
This game is one that allows the daily movement of prices and is based purely on supply and demand. Simple as that.
If we clear what the situation and the sense to invest in a stock market and if at this point, the issue sparked his interest, we invite you to continue getting to know this interesting world from our explanations.
related posts
- indicator forex 2012
- mt4 cycle identifier
- mtf has bar
- sidus v3
- stochastic macd strategy
Forex is simple follow the trend and you will rich.
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