THE STOCK EXCHANGE

VOCABULARY

* Security: titolo azionario

* Bond: titolo di stato

* Debenture: obbligazione

* Debenture-holder: obbligazionista

* Long-term loan: prestito a lunga scadenza

* Owner: proprietario

* Stock market: mercato azionario

* To do a deal: fare un affare

* Market maker: operatore principale

* Stockboker: agente di borsa

* Stocks and shares: titoli e valori

* Shareholder: azionista

* Assets: beni

* Shares: azioni

TYPES OF INVESTMENT

The Stock Exchange have an important role in the economic development, as it facilitates the exchange of securities, helps companies to raise capital and enchourage investmente from the general public. Security is the general name given the stock and shares that can be traded on the stock exchange.

Securities may be distingued in:

* Bonds, document issued by a government when it wants to borrow money from the general public. The bondholder is the document can use to obtain repayment of the loan, plus a fixed rate. Bonds are safest because they are backed by governement resouces.

* Debentures, represent long-term loans made to a company and offer a fixed rate of interest at the moment of repayment. Debenture holders, unlike shareholders, are creditors to the company.

* Share, equal parts into which the capital of a company is divided. The shareholders become owners of part of the company. In case of profits, they can get profits in proportion to the number of shares they have possess.

HOW THE STOCK EXCHANGE WORKS The Stock Exchange List is similar to a market. The companies are the suppliers, the market makers the wholesalers sett the prices of the shares according to supply and demand. They deal with stockbrokers who are similar the stallholders in market place. Finally there are the buyers called shareholders. They have to a contact stock brokers who will thake orders and then buy or sell, from or to a market makers. PROFITS AND RISKS

There are many factors which determine the price of shares. For example the companies position and human factors, such as emotion and irrational behaviour. Stock Exchange quotation have riported every day in news papers. Dealing with Stock Market similar to a guessing game where you have to guess if the prices move up or down. Speculators play the most important parts but they are not interesting in long-term investment because they buy and sell security for making profits. There are 3 tipes of speculators: bulls who believe that share price will rise, and tend to buy; bears who believe that prices will fall and tend to sell; stags who invest an new securities because they believe that prices of share will soon go up once they are in the Stoch Exchange.

ON LINE SHARE DEALING

On the Internet you can deal share trough on line brokers. Customers can choose their personal traded profile and select which brokers they want to deal with. The advantages are that they can have access to the latest dealing prices and they can execute traders in real time. Up to date news, prices and charts are distributed an the Internet directly to customer. Deals are processed electronically and clients can see their traders on line. On line share dealing gives additional advantages in fact brokers do not charged commision for share trading, customers can see share dealing prices at any time and they can carry out dealing even when stock markets are closed.