A market is a place where stock brokers and traders can buy and sell shares, bonds, and other financial securities. It is an aggregation of buyers, sellers of stocks and shares that represent ownership claims on business as well as on listed public stock exchange and those only traded privately. Examples like shares of private companies that are sold to investors through equity crowd-funding platforms. Stock exchanges list shares of common equity and other securities like corporate bonds and convertible bonds.
In 2015, there are a total of 60 stock exchanges with the market capitalization was $69 trillion. In 2017 the size of the world’s stock market capitalization was about $76.3 trillion and by country, the largest market was USA (34%) and respectively Japan and UK. Later the percentage increased rapidly. Presently, it has spread out North America, Europe, and Asia. Other stocks may be traded ‘over the counter (OTC) which is, through the dealership. Some other large companies have their stock listed on more in different countries to attract international level investors.
Trade in stock markets means the interchange stock or security from seller to buyer where equities (stock or shares) confer ownership interest with the company. Participants in the stock market range from small individual stock investors from anywhere in the world, includes banks, insurance companies, pension and retirement funds.
The stock market is one of the most important ways for companies to raise money along with imposing debt markets. All this allows business to be publicly traded, and raise additional financial capital growth by selling shares of ownership of the company in a public market. The liquidity that an exchange affords the investors enables their holders to sell securities quickly and easily which is the attractive feature in the stock market and staying in good potentialities in comparison with other less liquid investments like property and immovable assets.
The possession of the set of skills and knowledge of financial services which allows an individual to make well informed that help him to take effective decisions in doing financial planning, choice of trade and investment, transaction and calculation. It also helps in developing budgeting and investing, credit management, purchase process, consumer rights and responsibilities. It indeed a lifelong process, financial literacy is very much effective way confers skills and knowledge for all consumers to make choice, budget, purchase, trade by their own financial resources. A few numbers of institutions, the organization has been operating these courses of financial education especially in USA like AICPC, ACCI, FDIC, NAACP, SSA and the Foundation for Financial Literacy.
The pension is a fund which is added during an employee’s total working years which can be a ‘defined benefit or contribution plan’ from where some fixed sum is paid regularly to a person. Many pensions also contain an additional insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries. Finally, the common use of the term pension is to describe the payments a person receives upon retirement, usually under pre-determined legal or contractual terms. The trend of pensions and retirement provision was started during in 1645-1662 especially for the widow in Europe. However, a defined plan guarantees a certain payout at retirement, according to a fixed formula depends upon the person’s salary and the numbers of years he worked. Hence with this plan, the risk and responsibility lie with the employee that the funding will be sufficient for retirement.
Insurance is a protection plan from financial loss or it also a form of risk management usually used avoiding the risk of a contingent, uncertain loss. People who provide insurance known as an insured or policyholder. Insurance transaction involves the insured assuming a guaranteed in exchange for the insurer’s promise to compensate the insured against incident for covering the loss. The loss may or may not be financial; it must be reducible to financial terms, and generally involve something in which the insured has an insurable interest established by the ownership, possession, or preexisting relationship. The idea of transferring or distributing risk practiced by Chinese and Babylonian traders than in Genoa in 1347 as were insurance pools backed by pledges of landed estates. This insurance became popular in Enlightenment Era Europe, and specialized varieties developed. Later property insurance started at Great Fire of London in 1666, next in 1681, fire insurance schemes started by Economist Nicholas Barbon. Finally, the informal establishment of insurance market started in London and several related life, shipping, and insurance business in 1706. And in 1762 Edward R Mores established in the society for Equitable Assurance on Lives and Survivorship.
With the continuation of the gradual recovery of the global economy, it is likely the insurance industry is seeing the growth in premium income both in industrialized and emerging markets in 2011. By the side of economic advancement, the bulk of global insurance gradually growing and the premium incomes stand at $.62 trillion in Europe followed by $1.409 in North America and $1.161 in Asia.