THE STOCK MARKET: IS IT A REAL PUZZLE FOR YOU?

The stock market. To some, it's a puzzle. To others, it's a source of profit and endless fascination. The stock market is the finan­cial nerve centre of any country. It reflects any change in the eco­nomy. It is sensitive to interest rates, inflation and political events. In a very real sense, it has its fingers on the pulse of the entire world.

Taken in its broadest sense, the stock market is also a control centre. It is the market place where businesses and governments come to raise money so that they can continue and expand their operations. It is the market place where giant businesses and institutions come to make and change their financial commitments. The stock market is also a place of individual opportunity.

The phrase "the stock market" means many things. In the nar­rowest sense, a stock market is a place where stocks are traded - that is bought and sold. The phrase "the stock market" is often used to refer to the biggest an most Important stock market in the world, the New York Stock Exchange, which is as well the oldest in the US. It was founded in 1792. NYSE is located at 11 Wall Street in New York City. It is also known as the Big Board and the Exchange. In the mid-1980s NYSE-listed shares made up approximately 60% of the total shares traded on organized national exchanges in the United States.

AMEX stands for the American Stock Exchange. It has the second biggest volume of trading in the US. Located at 86 Trinity Place in downtown Manhattan, the AMEX was known until 1921 as the Curb Exchange, and it is still referred to as the Crub today. Early traders gathered near Wall Street. Nothing could stop those out­door brokers. Even in the snow and rain they put up lists of stocks for sale. The gathering place became known as the outdoor curb market, hence the name the Curb. In 1921 the Curb finally moved indoors. For the most part, the stocks and bonds traded on the AMEX are those of small to medium-size companies, as contrasted with the huge companies whose shares are traded on the New York Stock Exchange.

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Yours sincerely,

AlexSandra