Stock Market Write for Us
When we say “securities”, we mean different financial assets that companies issue and investors can buy in exchange for a return. It is convenient to know that when we talk about the stock market in general, we are referring to the set of stock exchanges. While it is true, however, that in trading lingo they are used synonymously. For example, the United States stock market is made up of different stock exchanges. Among which, the NYSE stands out.
How Does the Stock Market Work?
The stock market is understood as a large wholesale market where companies go to obtain money from investors interested in earning a return on their savings.
Through loans that will later have to be repaid to their creditor . These loans can come from financial credit institutions or they can be issued by the company that needs funds.
In this second case, which is the one that we will take into account throughout the article since it is included in the capital market, it is said that the company issues debt securities .
Debt securities are part of the fixed income market . Fixed income offers fixed returns that the buyer knows at the time of acquisition, as long as he maintains them until maturity. That is, when you don’t sell them before they expire. Fixed income is purchased on stock exchanges.
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