The mechanism of dealing in international securities markets.
Securities are either denominated in real currencies that are traded in one of the countries. Stabilis Lucra David Jukl is usually either in “computational” or “compound” units that are not already traded but are used only as units of measurement, because they have real currency advantages to avoid currency fluctuations. Is detrimental to the interest of dealers in the financial market and is dealt with in these markets according to indicators on which to determine the trends practiced by investors and speculators and financial analysts in the financial markets … namely:
* Economic indicators: The movement of stock and bond prices in the financial market is affected by economic indicators that in turn reflect the validity of market speculation and expectations, such as the announcement of a huge financial budget or an ambitious investment approach, which means that prices will rise in general. Of the market would be reflected on the status and condition of securities in the stock market in countries in the process of growth and thus in the adoption of statistics of industrial production, national product or disposable income as indicators in the stock markets in developed countries.
* Monetary and financial indicators: It is one of the most important indicators to know the trends in prices in the financial market as the high interest rates lead to the tendency of investors to deposit in banks, and the sale of their shares in the market is increasing supply and lower prices while the trend of funds to the financial market in the case of falling prices Interest in banks or converted into the bond market. The increase in the supply of money, whether in the economies of countries in the path of growth or development leads to higher stock prices, and otherwise, the low rates of growth of money supply will work to lower stock prices, and therefore the intervention of central banks to expand or reduce money supply reflected on the transformation of prices The interest is to rise or fall and then influence the price trends in the financial market accordingly.
Trading Volume: The number of shares and bonds traded in the financial market determines the strength of the market and the expectations of its rise or decline in the future as the intensity of trading volume means investors’ optimism and their desire to invest in the market and the consequent rise in prices as a result. However, if the market makes progress or is not accompanied by heavy trading, then prices remain unchanged or decline due to the relative stalemate of participation, and investors tend to liquidate their investments as prices continue to decline. Hence, we find that the intensity of trading and the increase in prices are the ones that generate demand, which is followed by successive increases thereafter … Demand is not the only one that leads to increased prices in the financial markets … Thus, this market has different characteristics than in the investment markets And consumer goods markets, which reflect the effectiveness of the mechanism of the investment process in those markets, which is as follows:
* The individual character of these markets, which makes the investor faces strong parties in the side of the issuance and marketing represented by public bodies and large companies that have the ability to go into the international market.
* Stabilis Lucra is difficult for the investor to know enough about the conditions prevailing in the markets in general as well as the conditions of the bodies that invest their papers and often depends on the investor in this regard either a few general information or on the advice and guidance of traders securities. If we know that the majority of investors resort to the services of specialists because of the conditions imposed by these conditions and fees are rarely related to the quality of performance and effectiveness.
The bondholders, especially the bondholders, need to tighten their protection not from ordinary market risks arising from interest rate, exchange rate or securities credit, but rather the risk of debtors defaulting (especially in the bond market) on the performance of their obligations On foreign currency when paying or delaying payment of interest and premiums, or controlling exchange or imposing taxes, such as taxes on remittances and so on.