Thursday, November 4, 2010

What is Stock exchange

A Stock exchange is a corporation where trading of stocks or shares of companies that has been listed in the Stock exchange is done by the stock brokers and the traders. A trading can be done in a stock exchange only by its members, nowadays all the markets have become modern and technologically advanced so trading can be done faster and from any part of the world in any stock exchange; however, the trade has to be conducted via a member in the stock exchange.

The price of the stocks or shares of the companies are mainly affected by the availability and the demand of the shares. When the trading of stocks is done during the initial offering, it is known as the “Primary trading” and when the trading of stocks is done at other times then it is known as “Secondary trading”. At the same time it is not necessary to trade the stocks through the Stock exchange; it can be done over the counter by the way similar to the trading of bonds.

The history of origin of the Stock exchanges dates back to the 11th century, but the trading of stocks only began in the year 1602 in the Amsterdam stock exchange and the Dutch East India Company became the first to issue the stocks and bonds on their company.

Stock exchange show cases many advantages like by selling shares, raising money for investment in business and make it grow. It is also a good option for people to buy shares as an investment instead of putting it in banks and more over the investor will be able to earn dividends at the end of every financial fiscal year as a part from the company’s net profit.

The Stock exchange can also be said as a show case of the economic situation of a country’s economy and if the financial situation of a country is stable, the stock market will also be on the rise and vice versa. Since it is important for a company to keep its share value good, it has to work hard and increase its management abilities and good products and at the same time satisfy its investors. Thus the Stock exchange directly and indirectly influences the economy of a country.

For every single Stock exchange, there are certain rules and regulations for a company or an organization to get listed in it like minimum market capitalization, minimum number of shares outstanding and minimum annual income.

* Bombay Stock Exchange (BSE):

Minimum Market Capitalization- Rs.2500 lakh

Minimum Public Float Equivalent- Rs.1000 lakh

* London Stock Exchange (LSE):

Minimum Market Capitalization- £700,000

Minimum Public Float Equivalent- 25 per cent

* NASDAQ Stock Exchange (NASDAQ):

It is a little quite different from the previous ones, it states that a company should have at least 1.25 million shares which amount more than $70 million and with earning of more than $11 million.

* New York Stock Exchange (NYSE):

Similar to the NASDAQ, a company should have at least million shares which amount more than $100 million and with earning of more than $10 million.

Related posts: What are stock exchange firms?What Is A Stock Exchange?What is the Stock Market?Price of Stock and the economy of the country ?Issuing StocksEasy Forex

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Monday, November 1, 2010

Samoan Tala WST

The National currency of Samoa is Samoan Tala. The symbol is WS$. One tala is divided into 100 sene. The ISO 4217 code is WST. The coins in current use are 1, 5, 10, 20, 50 sene and 1 tala.

The currency notes in circulation are 2, 5, 10, 20, 50, and 100 tala. The Central Bank is Central Bank of Samoa.

In 1967, coins were minted for 1, 2, 5, 10, 20 and 50 sene. These coins were casted, except for the bronze 1 and 2 sene in cupro-nickel. Aluminium-bronze 1 tala coins were issued in 1984.

In 1967, the Bank of Western Samoa issued currency notes for 1, 2 and 10 tala. 5 tala notes were included in 1980 by the Monetary Board of Western Samoa. In 1985, the Central Bank of Samoa issued its earliest notes for 2, 5, 10 and 20 tala, with 50 and 100 tala notes circulated in 1990. New, currency notes for 5 to 100 tala were circulated in late 2005. On the 1 August 2008 the central bank introduced a fresh series of banknotes from 5 to 100 tala.

Related posts: Syrian Pound SYPBarbados Dollar BBD historySwiss Franc CHFUtd. Arab Emir Dirham AEDAlgerian Dinar DZD historyEasy ForexThis entry was written by admin, posted on February 10, 2010 at 12:17 am, filed under currency. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.

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Friday, October 29, 2010

Slippage

Slippage is the difference between the price at which your order got filled and the price at which you actually expect it to be filled.  Slippage is normally a kind of loss.  This usually happens when you place a market order or stop loss. If the political or economic climate of the world changes, there might be an increased volatility in the forex market resulting in the prices shifting more rapidly, causing prices to gap thereby causing slippage if you are stopped out.

Everybody perceives the market to be going down and they will all be selling their securities at the same time.  There will be fewer buyers to buy the dropping securities especially when the market is falling rapidly and so the stop loss filling price will be much less than what the investor wanted. Buyers will be buying at their price and not at the price of the investor.

Related posts: Finexo ReviewFX cast ReviewTwo-Way PriceWhat are stock exchange firms?Forex GlossaryEasy ForexThis entry was written by admin, posted on February 10, 2010 at 12:19 am, filed under Glossary. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.

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Monday, October 25, 2010

The currency pair

The currency pair represents two currencies, one that is being sold and one that is being bought.

The first currency represented in the currency pair is the base currency also known as the transaction currency.

The second currency represented in the currency pair is the quote currency also known as the counter currency or payment currency.

A typical quote of a currency pair will detail on how many pairs of counter currency will be required to get one unit of base currency.

The counter currency is used to purchase the base currency.  In other words, you exchange the counter currency for the base currency.

For instance, in quotation EUR/USD 1.2800, it states that one euro is exchanged for 1.28 US dollar. If the quote will improve from EUR/USD 1.2800 to EUR/USD 1.2810, this means that the euro is becoming stronger and the dollar is becoming weaker.  Sometimes the EUR/USD quote will move from 1.2800 to 1.2790, which means the euro is getting weaker and the dollar is getting stronger.

Majors in Currency pairs are those pairs of currencies which are traded mostly; majors contribute to 90% of the total forex trading in happening.  The majors of currency pairs in the current trend are EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD and USD/CAD; however, this might vary based on the trading trends and balance of trade of countries.

Cross Rates

The currency pair which does not consist of the most traded currencies is known as the cross rate currency pair.  The pairs which are traded with one of the currencies being euro are known as euro cross rates.  The currency pairs, which do not have USD or EUR are known as Cross Rates.

Spread

Any quotation of a currency pair will consist of 2 prices:

Ask price: This is the price for which the seller is willing to sell the first currency pair.Bid price: This is the price for which the buyer is willing to buy the first currency pair.The difference between the Ask price and the bid price is known as the spread. The spreads provided for currencies are not the same; it varies between brokers in a bit. In cases of popularly traded pairs, the spread is going to be very less.

Pips

Pip is defined as the percentage in point and it is the minutest difference in the price move in forex trading.  Most of the forex trading is carried out based on the difference in pips.

For example, consider the currency pair EUR/USD which is trading at 1.4000 and when the exchange rate increases to 1.4010, this currency pair made a 10 pips (smallest units) move in increase.

So, the pip is the minutest change apart from the fractional representation of the exchange rate of the currency. Thus, 1.4000 to 1.4010 is the identical move in pips terms like 110.00 to 110.10.

If you should estimate the pip value or how much can one pip be valued at, you need to have some extra information like:

Trading sizeLeverage useActual rate of the pairCurrency Correlation

The linear relationship between two currencies is assessed using the currency correlation.  Currency correlation is assessed by virtue of its relationship with other currency pairs, commodity market, and stock markets.

Related posts: Currency tradingTrade Currency and Price CurrencyForex GlossaryTwo-Way PriceAlpari UK Ltd ReviewEasy ForexThis entry was written by admin, posted on November 22, 2009 at 9:43 am, filed under currency. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.

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Sunday, October 24, 2010

Feds: Beware of the practical effect of the Fisher dollar

Richard Fisher, President of the Fed Bank of Dallas and a former Vice-President of the US trade representative of the Federal Reserve officials shall take account of their actions are to take dollar, impact said.

"We do not need to be aware of the effect, regardless of whether we have one of the other variables and variables is the dollar value of the dollar against other currencies," Fisher said in an interview this week, Bloomberg's headquarters in New York.

The US currency is against the six major counterparts slumped over 6% Britannicassa-27, that when the Chairman Ben s. Bernanke said the Fed "makes all that it can" then you can keep the exploitation of the running and that the more purchases of securities is also well founded.Fisher is one of the four regional Fed Presidents who have questioned the effectiveness of further easing the relaxed.

Central Bank's actions are not the only effect of the dollar, said the 61-year-old leading regional bank, the International Criminal Tribunal for the former hedge fund manager that next year the interest rate-setting Federal Open Market Committee votes. "It is also our long-term fiscal health perceptions, "he said.

Fisher also expressed Skepticism in the so-called price level, the focus, Charles Evans, Chicago Fed President support the employment strategy of some inflation. policymakers are concerned about the declining inflation that has brought real terms, the economic costs of the credit to.

Mandate of the United States of America

"Price-level targeting only once before in Sweden, an attempt was made to the 1930s," Fisher said."It is handled, but it is very confusing to the American people."

Since the mandate of the Agency requires to keep the Fed congressional activities in low and stable inflation, while at the same time the level of employment, also increase the size of the item may prompt employment objective legislators calls Fisher said.

"Taking into account the fact that we operate two, on the basis of a remit, the Congress may require we also have employment level item. personally, I would be happy inflation objective, but I don't think Congress can tolerate it."

Fisher twice this month has further easing of Monetary Union would result in a reduction in the speeches, the certainty, not his opinion tells the New York audience, October 19 that "no decisions have been made on these fronts", and only then, when the FOMC meeting, November 2-3 does not appear.

Instead, investors Scott Minerd, which helps to monitor the 76 billion dollar investment in Santa Monica-based Chief Officer Guggenheim Partners LLC, such as views.Minerd wrote a white paper that the path to the second round of quantitative easing to mitigate the impact of the "is clearly grubbed up an," and "as available" basis, "trail, bread crumbs," the Fed officials disclosed in a note to the left of the other.

Fed Statement

Sept 21 FOMC confirms expectations that it will launch a large-scale asset purchases, saying, it is "ready to ship other accommodation, if necessary, to support the economic recovery and the inflation rate in the period in accordance with its mandate, to return to."

Four of the Fed Presidents — Chicago Evans, Atlanta's Dennis Lockhart, New York City's William Dudley and St. Louis James Bullard — speeches this week confirms a new round of Unconventional monetary stimulus is likely to lead to the idea.

Bullard, speaking yesterday in St. Louis, is proposed, the Fed begins with the treasuries of the purchases of 100 billion u.s. dollars, and calibrate later purchases, on the basis of the rate of recovery.

Fisher said in her speech in New York this week that "further accommodation, by using the power of the vakiintumattoman policies, it is not clear that."

Shared concerns

Similar doubts have been expressed since Sept 21, Presidents Thomas Hoenig Kansas City Philadelphia's Charles Plosser and Narayana Kocherlakota Minneapolis.

Ministry of finance, ranged between speculation about how much debt vis-à-vis the US Federal Reserve to buy, if it continues in the middle of the purchases.

The benchmark 10-year Note yield strength increased by 56% on the basis of one at 11: 43 in New York after the fall as much as two years from the date of entry into The High BP. was 4.01% in April.

The dollar index, you will want to track the main-à-vis the US dollar at six trading partners, including the euro, Yen, pounds, and the Canadian dollar against the IntercontinentalExchange Inc. used the amount of 0,1% 77.475. It has declined 6.5% since Britannicassa 27.

"I want to be very choosy and short-term movements in long-term development must read," Fisher said in response to questions put to them orally by the members of the public about the dollar, after his speech this week.

Strength views

"In any currency, the answer is, is going to be valued according to the issuer of the underlying strength of the perceptions of State-of-the-art," he said. "The dollar is a key currency in the world. "

Fisher, President of the Dallas Fed since 2005, he worked in the territory of the former Treasury Secretary, w. Blumenthal Carter was responsible for the management of the 1978, when high inflation and Blumenthal's policy to "omission" towards the US currency shook investor confidence as an Assistant during the crash in the dollar.

Regional bank chief told in an interview with Bloomberg television in 2004 that he had been "conditioned" that comes with the 29-year-old meeting with the President, Blumenthal Monday, November 1, 1978, the day that the fed and the State was forced to start an emergency rescue package, depending on the size of the memory.


© Copyright 2010, Bloomberg News. all rights reserved.

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Canadian dollar, slightly changed the currency trade, the G20 meets to discuss the

Malcolm Morrison, according to The Canadian Press

TORONTO-the Canadian dollar a little to the agreement was amended by the Finance Ministers of the G-20 on Friday night with a State-of-the-art meeting and the Governors of the Central, South-Korea, currency trading, you will see a warning in order to be able to add a note.

"The market is likely to be very weak today, largely because of this," observed Shane Enright, CIBC World Markets, the Executive Director.

Turn off the strong Loonie began the day, but a midday was even slightly 0.04% 97.48 cents to the us.

G-20 will be collected only two weeks meeting in Washington was ultimately defeated iron, currency differences, which have resulted in a trade war that can start another downturn fears.

Such a situation, the currencies of the countries of their competitive advantage to devalue the world economy, which has yet to fully recover from the global economic meltdown, two years ago. of barriers to trade, hitting with in response to international trade and the economic recovery.

But analysts were Pessimistic about these differences should be resolved in this weekend meetings.

(A) in the comments-Barclays Capital "it is difficult to see the significant policy changes come from the G20 ran out of this weekend, taking into account the differences between the different groups, in particular, appear to be a broad and versatile, their incentives," said.

"In addition, the Minister for the Central Bank of Brazil and the Member of the Management Board shall participate in the meeting, it does not bode well for bringing all of the parties to the negotiations table, in particular, that additional capital, Brazil announced the week after."

Loonie's lacklustre performance took place on Friday in the middle of the raw materials prices and a stronger-than-expected August retail sales in Canada in reading.

Statistics Canada reported that retail sales increased by 0,5% of the sales of 36.1 billion dollar flat after the previous two months.

It was better than 0,1% of the invoice, which economists were missing.

The strength of the dollar had previously found that dramatically as a result of high oil prices but 12.00, December crude agreement, New York Mercantile Exchange forward 16 cents, US $ 80.72 after goes as high as US $ 81.78.

In the meantime, two cents from December of copper in fertiliser extracts by US $ 3.81 GBP Nymex, even if the gold December contract in New York rose by $ 2.60 US $ 1,323-Ounce.


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