Abu Dhabi Securities Market was established in 2000, the market has a legal personality and financial autonomy, and administrative and supervisor,y and executive powers necessary for the exercise of its functions. "Market aims to provide an opportunity to invest savings and funds in securities in the interest of the national economy and ensure the safety and accuracy of transactions and ensures the interaction of the forces of supply and demand to determine prices and to protect investors and strengthen the foundations for proper handling and equitable and tighten controls on trading in securities to ensure the safety actions and procedures, and develop Awareness of the investment to ensure that savings are channeled to productive sectors, contributing to the achievement of financial and economic stability". https://www.adx.ae
The economic functions of the Stock Exchange have a great impact on the economic level of the country. In this section, we will mention some of the functions of the stock exchange. Development saving: stock exchange encourages investment in the field of securities and savings are channeled to serve the national economy which is reflected most clearly in a state of small savers who do not have the little tags and cannot create separate projects and then prefer to buy securities a b t a financial measure of financial energy which helps to serve the purposes of economic development Assistance in funding: investment in stock exchange helps to transfer of funds from lenders to borrowers. The lenders are reducing the rate of consumer spending in the current time and saving part of it willing to get higher incomes in the future when the time comes-term recovery of these loans. Contribute to the financing of development plans: most time, the government may not have enough money to spend on the project, so the government will go to inform their stock to the public. Directing resources to areas most profitable: the bid and ask trading seeking to achieve high efficiency in directing resources to the citizens to industrial and commercial. To reach this level of efficiency, it should availability these objectives: price efficiency, the quality of trade, equity markets, and security.
Achieve equilibrator prices for securities: If the stock market is based on a firm foundation and strong will determine the prices of securities traded realistically and based on sufficient knowledge and a high degree of justice. The possibility of assessing companies and investment projects efficiently: by contributing to raising the awareness of investors and the horrible reality of companies and projects Provide transparency: The stock exchange requires companies whose securities are listed on the disclosure of all their data to investors, including in turn creates a state of transparency reflects the economic reality of the country and encourage more capital to invest in the country. Types of exchanges Since the stock market is a meeting place for sellers who are buyers who have the supply side demand side there are many types of exchanges, including Employment exchange: The place where workers meet together and hold meetings to organize themselves and view the proposals for various services that could be offered by work Stock Exchange. Products exchange: It is also called the trade exchange a place Where they are sold the material and basic products such as cotton and sugar are dealt in this market on basis of samples displayed different products, where products have sold several times and determined by the domestic and international prices. Stock value exchange: Transfer of ownership of these shares and bonds from hand to hand; it is the most famous type of stock exchange. These stocks and bonds are dealing through brokers and intermediaries.
Currency exchange: Is one of the markets dealing in foreign exchange and is located in all parts of the world, particularly in major centers such as New York and London, Paris, and Tokyo, linked to these markets each other through computer networks and telephone, fax and telex and other means of communication. Modus Operandi in the stock market Stocks markets generally operate based on Bid and ask. There are no direct contacts between investors, the relationship between investors is done by intermediaries or brokers. In this case, each investor will have a contract with the brokers, he will decide to buy or sell depending on the market price or the investor will determine the prices for a broker, and the prices will affect by the number of ask and bids.
The person concerned in the implementation of the brokerage company registration command, whether for sale or purchase on the stock exchange and trading system as soon as verification of client balances of securities in the case of a sale of its assets or cash in case of purchase. circulation on the same day To buy and sell Securities on the same day to increase the profit in a short time, which led to an increase in the value and volume of the trade. Also, it protects the investor from the changing in the prices for a long time, but it has a risk for new investors who don't have enough experience in expecting price changes. Are dealing with the Stock exchange Investors will deal with two types of people when they are dealing with the stock exchange. Direct people: the investor will deal with the broker and financial advisor, the broker who is responsible for the transaction of buying or selling the stock, the and financial advisor which could be a person or a company that specializes in a financial advisor. In direct people: it means that the investor who will buy the stock can't know from who will buy the stock, also the investor who wants to sell the stock, h will not know to whom the stock will go.
Abu Dhabi Securities Exchange Market Example For Free. (2017, Jun 26).
Retrieved December 10, 2024 , from
https://studydriver.com/assessing-the-abu-dhabi-securities-exchange-market/
A professional writer will make a clear, mistake-free paper for you!
Get help with your assignmentPlease check your inbox
Hi!
I'm Amy :)
I can help you save hours on your homework. Let's start by finding a writer.
Find Writer