Listed Stock Market
Before shares are offered to the market, they need to be listed on a stock exchange for the purpose of trading. Listing means that the stock has been listed on the stock exchange, and can be traded in the secondary market. The process of listing on a stock exchange is completed within 7 days of issuance. Usually, it takes about 3 weeks to close the listing of the book's issues. In the case of fixed price problems, will be about 37 days after the end of the problem.
After a stock is listed, an investor may trade through a brokerage account with a registered stockbroker who may, in accordance with the usual procedure, sell the number of shares he wants to sell, They sell the price. It is widely believed that the stock market that day, a huge market volatility, price increases, and the strength of the secondary market will be reduced to a fair price of the price.
The prices of listed shares in the secondary market may be higher or may not be higher than the prices offered. If the price is low after the stock is listed, you can hold your stock at any time until the market moves again in a favorable direction.
Companies wishing to be listed need to enter into an agreement with a stock exchange in which they are listed. The agreement imposes certain rules and regulations on the company after the listing process, and if the rules are violated, the stock exchange has the right to impose a fine on the company concerned and, if necessary, to remove the name.
Stock listings bring two additional advantages to the company: acquiring venture capital and making their shares smoother by trading in the open market. The company also lists stocks because investors usually invest in listed stocks is a common market trend, as listed companies are subject to more stringent requirements than non-listed companies, a fact that provides investors with additional confidence and security .
By listing stocks, companies can broaden their investor base and gain venture capital. This will fund the company's continued growth. In addition, the listing provides the latest pricing of the company's stock, which benefits existing shareholders and makes it easier to provide shares to remember future acquisitions. Listed companies are called to attract more preferential terms and conditions in the credit market.