Topic. 8: Internet-trading

SecuritiesTrading on stock exchanges may occur, usually only those securities that have been specially checking the stock market. This test is called the listing and its result is the inclusion of securities is the list of which can be traded. That effectively means the listing admission to exchange trading.

Holding listing means deep and comprehensive inspection of the issuer in compliance with the requirements imposed by the exchange to those who wish to sell their securities because of the stock market. These requirements can be quite high and concern not only economic activities of the issuer and its business and reputation. Since such test involves the disclosure of a significant amount of information that the issuer does not always ready to disclose, the legal procedures listed by the State is not compulsory. However, the benefits that the issuer receives when entering the stock market is usually the reason that despite the voluntary listing, wanting him to go always enough.
Among the benefits that those who have passed basic listing is:
• High level of liquidity of securities due to enter the market as a strong stock;
• increasing the value of the securities as those that were listed, and therefore reliable for investors;
• improve their image by advertising their securities to be permanent, while they will trade;
• greater confidence to the issuer from banks and other financial institutions;
• reduction of inspections by tax authorities.

Thus, an investor who buys securities on the stock exchange can be confident in the reliability of information about them. However, it should be borne in mind that exchange, ensuring reliability securities do not guarantee their return.
In Ukraine today listing is not mandatory to enter the stock exchange. But on domestic securities exchanges still required to undergo certain checks are not as significant as in the complete listing, but enough so that the exchange could be responsible for information provided by issuers.
In particular, the Ukrainian stock exchange admission of securities carried out in three sections K1, K2 and K3. The section K1 traded securities issuers which meet the highest requirements of the domestic stock market. Sections K2 and K3 are securities corresponding lower order.
Securities Quotes  - a mechanism to identify their market price, fixing it for a certain period, usually the day of the exchange and publication in specialized journals.
Since the exchange is concentrating in large quantities supply and demand determines the ratio between them, the price set on an exchange ratio based on this objective will be most at any given time and a given set of conditions.
Price at which concluded agreements with securities called exchange rate. Exchange rate is usually set benchmarks for the conclusion of agreements outside the stock exchange.
Quoted price is set based on the prices of all signed agreements and their volumes. This price is for reference purposes carry, giving an idea of ​​what is happening in the stock market with one or other securities. Sets of special stock unit - Quotation Committee. In determining the prices quoted commission have to be guided by certain rules that the exchange rate is set at a level which provides the greatest number of transactions. also quoted Commission determines the upper and lower price levels, the opening price and closing price. This price excluding unusual for these trades.
From quoted prices usually start a new transaction exchange day. 

This price determines the real value of the security, which will almost always be different from the nominal. 

The excess of market price over the par value called Agio, exceeding the nominal value of the market rate - disagio.
Quotes securities to determine their real market rate can also authorized to exercise governmental organizations, specialized companies and banks.