Category Archives: Stock Secrets

Amsterdam Stock Exchange

Did you know that the Amsterdam Stock Exchange is the oldest stock exchange in the world? It was established in 1602 by the Dutch East India Company (also known as VOC) for dealings in its printed stocks and bonds. After a period of time it was renamed into the Amsterdam Bourse.

Today, the Amsterdam Stock Exchange doesn’t exist as an independent subject. In 2000 it merged with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext, and it’s now known as Euronext Amsterdam (there are also Euronext Paris and Euronext Brussels, for example).

Shortly after its establishment in 1602, the Amsterdam Stock Exchange started trading on a daily basis. This stock exchange is considered to be the oldest modern securities market in the world. Threats of pirates, disease, misfortune, shipwreck and various macroeconomic factors heightened the risk factor and thus made the trip around the world very expensive. The stock issuance made possible the spreading of risk and dividends across a vast pool of investors.

What Is Portfolio In Finance

You’re a beginner in online trading. You’ve decided to start dealing with stocks and the stock market, but you’re bombarded with different specific terms you don’t quite understand. That’s completely normal, every beginner gets confused with the new terms, so your learning should start from the very basics.

Your broker has probably given you many tips, including one very specific – you should diversify your portfolio. But, what does a portfolio actually represent? If we go by the book, a portfolio is a collection of investments held by an investment company, hedge fund, financial institution or individual. A portfolio is referred to as any financial asset, not only stocks. A portfolio can be made from bonds and cash too, for example. You can hold your portfolio and manage it by yourself, or you can give it to professionals who manage it for you.

When you decide on the structure of your portfolio, remember that the best portfolio is the one that’s minimizing the risk and maximizing returns. That’s the golden rule of trading.

Worst-Performing Stock Markets And How To Access Them

Investing in stocks is like a game – you have 50% chance of winning and 50% chance of losing. Although it may seem like some shares are very reliable and stable in value, they can sink overnight and you, as an investor, can lose all your money. But, if you’re feeling lucky this year and you believe in the rebirth of some stock markets, here are the worst performing stock markets in 2014 and how you can access them.

1. Russia – Moscow stock exchange

It’s no surprise that the first place in this list goes to a Russian stock market. Total loss in 2014 was 54pc. This market can be easily accessed by buying a fund that has a broader remit, for example. Or you can simply tip for the Neptune Russia or Greater Russia fund.

2. Colombia – Borsa de Valores de Colombia stock exchange

Colombia is constantly struggling with many different problems and these everyday crises have affected the stock market as well. Total loss was 34pc. If you still have a wish to invest on this market, iShares MSCI Colombia Capped ETF and the Global X MSCI Colombia ETF are a good choice.

3. Nigeria – Nigerian stock exchange

African countries have never actually had a good stock markets, and many investors have problems accessing this market. But there is the Global X MSCI Nigeria ETF, which is listed on the New York Stock exchange. If you want another choice, a small number of African funds can also be found.

Shanghai Stock Exchange

Shanghai Stock Exchange (SSE) is the world’s third largest stock market by market capitalization. China represents one growing economy, so its markets constantly record an increase in market capitalization and total trading. There is another important stock market in China – the Hong Kong Stock Exchange, but unlike it, the Hong Kong one is not entirely open to foreign investors.

The securities listed on the Shanghai Stock Exchange include three main categories:

• Stocks (“A” shares listed in yuan (restricted to domestic investors) and “B” shares listed in US dollars);
• Bonds (including treasury bonds, corporate bonds and convertible corporate bonds);
• Funds.

There is one main index used on this stock exchange – the SSE Composite, also known as Shanghai Composite. This index is used to reflect the SSE’s market performance. Constituents for this index are all listed stocks (both A and B shares) on the stock exchange.

The Shanghai Stock Exchange is open for trading from Monday to Friday. The morning session begins with centralized competitive pricing from 09:15 to 09:25 and it continues with consecutive bidding from 09:30 to 11:30. Afternoon consecutive bidding session lasts from 13:00 to 15:00.

Frankfurt Stock Exchange

The Frankfurt Stock Exchange is the world’s 10th largest stock exchange by market capitalization. Located in Frankfurt, Germany, the Frankfurt Stock Exchange is owned and operated by Deutsche Borse, which also owns the European futures exchange Eurex and the clearing company Clearstream. It is located in the district of Innenstadt and within the central business district known as Bankenviertel.

The Frankfurt Stock Exchange accounts for over 90% of the turnover in the German market and a very large share of the European market. In 2010, the Frankfurt Stock Exchange agreed to move to abolish floor trading and completed this transition in May 2011. Today, trading takes place exclusively via the Xetra system, with redundant floor bookers taking on the role of market-marketers of the new platform.

More than 14 international exchanges have adopted Xetra (including the Vienna Stock Exchange in 1999, the Irish Stock Exchange in 2000 and the Budapest Stock Exchange in 2003). Approximately 47% of the 300 market participants in Frankfurt come from abroad. As of November, 2010, companies from more than 80 countries list on the Frankfurt Stock Exchange with 49% from North and South America, 31% from Europe (including Russia), 14% from Asia and 6% from Australia and Africa.

The Frankfurt Stock Exchange has more than 250 international trading institutions and more than 4,500 traders. Investors directly connected to the Frankfurt Stock Exchange represent 35% of the world’s investment capital. The trading indices in Frankfurt are DAX, DAXplus, CDAX, DivDAX, LDAX, MDAX, SDAX, TexDAX, VDAX and EuroStoxx 50.

Automatic Xetra trading runs from 09:00 to 17:30, with closing function from 17:30 – 17:35, floor brokers’ trading times are from 08:00 to 20:00.