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The Stock Market: The Basics You Should Know

By: Calvino Maseko

The New York Stock Exchange may have stocks listed that are listed on other major Stock Markets. A company headquartered in Amsterdam may be listed on multiple stock exchanges. Many foreign organized companies are listed on the New York Stock Exchange. There is a tremendous value for foreign companies to be listed on an exchange in the U.S. The exposure and knowledge of a foreign company has a face on the New York Stock Market.

Most people are aware of American companies utilizing off shore manufacturing of their products. It may be not as well known that some traditional American brand companies are owned by foreign companies. Other American brand companies have a significant multi-national presence with significant stock ownership by foreign banks and investors.

Euronext is a combination of derivatives, currency and equities to name a sample of products. There are other exchanges that include the AMEX. There are listing requirements for each of the exchanges. The Stock Market is basically a place where buyers and seller of a piece of a company come together and in the process the company hopefully raises some cash or other value.

Stock broker

A stock broker must be qualified to sell equities. In order to be certified the stock broker must be educated and pass state administered tests. Aside from the basic minimum qualifications a stock broker has a track record in his or her handling of stock portfolios.

If the stock broker works for a brokerage house and most do, ask about the clients of the firm.

The stock broker selection points

- Hiring a friend that is a stock broker can be problematic if a disagreement occurs.

- Does the candidate stock broker's investment strategy coincide with your ideas about investing.

When the candidate stock broker is speaking to you does he or she gloss over information or do you get the impression it is a sales pitch. Every stock broker is a sales person, but there are limits in this field.

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