stock trading basics

stock trading basics The Bourse is a place where financial products are exchanged, called ’financial instruments’, or securities. An action is a title deed. A share is issued by a capital company that needs to finance itself. To hold a share is to hold a portion of the capital of that company. It opens up rights, in particular the right to vote at shareholders’ meetings and the right to receive: the dividend, paid every year according to the company’s earnings. A bond is a debt obligation. A bond can be issued by a large corporation or a state. Issuing bonds means borrowing from investors in the financial markets. Holding a bond means lending money to an enterprise or a state. Each bond represents a fraction of a loan. The investor who holds a bond collects interest each year, called ’coupons’. At the end of the term of the loan, the company or the State reimburses the capital. An obligation does not open rights, like the right to vote, unlike an action. The units of UCITS (collective investment undertaking) represent a fraction of a portfolio of securities Ouargla, Algeria

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