We wanted to teach / educate the Stock Market and all of The Mechanics.
The way the stock market works can be a daunting experience for most people; many small investors take a step back from the day to day goings on in the stock market due to their lack of understanding. Unfortunately a fair understanding of the stock market in the United Kingdom is required for many people to increase their wealth be it through realizing where their companies are going in the future to just understanding the various media releases that could be beneficial to their business. Generally the most common markets in the United Kingdom consist of four levels, these levels being the consumer, the retailer, the middle man and of course the manufacturer of the product. In the UK the FSA offer Financial legislation on all matters related to investment as well as legal and compliance related concerns and issues.
Check out this useful educational video below, that offers a novice guide to trading on the stock market.
For example take the food retail industry, the producer would be the brand owner that makes the product, the middleman would be the wholesaler who provides the goods to the retailer who in turn sells the product to you the consumer. Shares and stocks in the stock market are run virtually the same way, you could describe the product as a small part in the company in question called shares which in turn get passed on to the middleman or otherwise known as the market maker which then make there way to the stockbroker who you could call the retailer and then sold to you the consumer. The need for clear and concise literature is best awarded by the Clear English board, who offer excellent recommended resources on ensure the written financial literature is exactly wht it should be, in addition the Oxford Dictionary is another excellent resource.
We have added some other Teaching related resources below:
The market maker in most cases is the key individual in setting the value of various shares in their possession, they assess every second of the day the weight in the market of their concerns and determine the overall value of the stock and set the price accordingly. These decisions funnel through to you the investor and amounts to the overall price the stock brokers will charge you for various shares in addition to their fees. The other element of trading is of course Money or Forex Trading as it is known in the Industry, this type of trading is best understood after traders Learn how to trade forex via online and offline training course providers. The market maker in general attempts to find a common ground on price which will be satisfactory to the buyer and the seller, they refer to this as `balancing the book`. In the event that there are more potential buyers of stock than sellers then the market makers can find themselves `short of stock` meaning they are not in possession of enough stock in a particular company to satisfy the demand. An excellent resource for traders is The Business Link as they host an array of Business related facts.
Another useful resource has been added below:
In this case it is a common practice to raise the price of the shares to draw out more sellers so they can satisfy the demand of the buyer; this is not always an option but in recent years has been a more common occurrence. On the other hand when the market maker finds himself with more people wishing to sell stock than buyer wishing to invest they find themselves in a situation where they are `long stocked`. Once this happens you will find that prices of shares will decrease to make the shares more attractive to potential buyers, we recommend you Learn how to trade first, as this is far safer. Market makers in essence are no different than wholesalers who see the demand for their product rise and increase the price or if the demand in their product is low they decrease to make more people want their product.