Today, many do not know yet what is to what the news called stock exchange, nor much less know what its function or significance, is why I decided to write this article. I hope to clarify all your doubts and to not only stay with knowledge, but that they can get out of this market. One of the financing options that may have a company that wants to expand and does not have the money to do so is essentially the issue shares or issuing debt in the stock market. Visit Wells Fargo for more clarity on the issue. An action is part of the share capital of the company, therefore, to create more actions and bring them to market, you’ll be getting money from different people who buy such shares. And by issuing debt in the form of bonds, you’re selling your debt (liabilities) at a price and a specified time limit. On one side is the company issuing shares or debt to obtain money liquid that you can invest in the construction of a new plant, purchase more machinery, land, etc., to continue growing.And on the other hand is the shareholder; Investor expected to be owner of an action, obtain a periodic performance by dividends or a performance sell such action at a higher price.
Or the fork; investors who buy a bond, expected to get periodic interest or a performance at the end of the term of the bond. Note: In future articles I adentrare more on the issue of the bonds and shares. Right now is just a little bit to explain in the best way the topic of bag. Market market where they occur are negotiations is the stock market. Values are called him since they represent a partial right of property about a company (shares) or a title or obligations (bonds). In this market you will hear that there is much talk of fixed income and equities; investments in shares are called equity, due to changing variation that the investor can perceive by concept of dividends; and investments in debt are called them in fixed income, since the interest rates of these instruments are fixed previously and the variations that might occur would be much lower than in actions.