4. Abstract De Bolsa De Valores

4. Abstract De Bolsa De Valores

The word "bag" has its origin in a building that belonged to a noble family, surnamed Van der Buërse in the European city of Bruges, in the region of Flanders (now Belgium), where were held meetings and meetings of character trade. The coat of arms of this family was represented by three leather bags, purses of the time. In those times the volume of the negotiations, the importance of this family and transactions in that location were made, people gave the name to the site and the role of "Buërse" and by extension all over the world he continued denominating "bolsa" the centers securities transactions or products.

Bruges, which once had 100,000 inhabitants, surpassed in population to cities like London and Paris and was a commercial center of first order in the thirteenth and fourteenth centuries, the main northern Europe, both for its status as a port city as its intense production of textiles and especially the famous "Flemish cloth" renowned for their quality, besides being the marketing center of Europe's oldest diamonds.

However, what is considered the first bag it was created in Antwerp, Belgium, in 1460, and the second in Amsterdam in the early seventeenth century, when the city became the center of world trade. The stock market as such and based on its predecessors, comes after the French Revolution in the eighteenth century promoting capitalism rather than a feudal system. At the same time the term is coined by Adam Smith in his book The Wealth of Nations.

The Amsterdam Stock Exchange is considered the oldest in the world. It was founded in 1602 by the Dutch East India Company (Verenigde Oostindische Compagnie, or "VOC") to make deals with stocks and bonds. Later it was renamed Amsterdam Bourse and was the first to formally negotiate with financial assets.

The Amsterdam Stock Exchange market also functioned as colonial products. He published a newsletter that served as a benchmark of transactions weekly.


Much later, the primacy conquered London, whose stock exchange, called London Stock Exchange, was founded in 1801.
characteristics
Performance: Always invested in the stock market is to obtain performance and this can be obtained in two ways: the first is the payment of dividends and the second with the difference between the sale price and the purchase of securities is ie the gain or loss obtained.
Security: The stock market is a market equity, ie, the values ​​are changing in value both upwards and downwards and all this carries a risk. This risk can be made smaller if securities over time are maintained, so that the probability that the investment is profitable and safe is greater. Moreover, it should diversify purchase securities, ie purchase of more than one company.
Liquidity facility that offers these types of investments to buy and sell quickly.
Participants
Intermediaries: brokerages, brokers, and stock brokerage companies, securities firms and securities and exchange agencies.
investors:
Short-term investors who risk much looking for high returns.
Long-term investors seeking returns through dividends, capital increases and other strategies.
investors adverse to risk, preferably invest in fixed income securities State, in many cases of underperformance such as Treasury bills or bonds.
Companies and states, companies, public or private agencies and other entities
economic functions [edit]
The stock exchanges meet among others the following functions:

Channel savings into investment, thus contributing to the economic development process.
Contacted companies and state entities in need of investment resources with savers.
Give liquidity to investment, so that the holders may convert their shares into cash or other securities easily.
Certify market prices.
Favoring an efficient allocation of resources.
Contribute to the valuation of financial assets.

Moreover, the bags are subject to the risks of economic cycles and suffer the effects of psychological phenomena that can raise or lower the prices of stocks and shares, being considered an instrument for measuring the impact of economic, political and social and it is said that the bags are or may be a barometer of the performance of the economies of countries