The Personal Stock Investing Essay

Exclusively available on IvyPanda Available only on IvyPanda

The stock market in China and personal stock trading

A stock market is a collection of buyers and sellers who meet and transact insecurities, but it does not involve physical facilities. The two main stock markets in China are Shanghai Stock Exchange and Shenzhen Stock Exchange. The stock market in China is quite huge and it attracts both domestic and foreign investors, who transact in securities. However, the activities of foreign investors are tightly controlled by regulatory bodies that seek to protect the interests of domestic investors. The body that regulates the activities of all stock markets in China is known as the China Securities Regulatory Commission. The following are the main categories of securities that are listed in stock markets in China: bonds, stocks, and funds. Treasury bonds are the most active securities in the People’s Republic of China. Other bands that record significant transactions are corporate bonds. In China, the two most predominant shares that are traded are known as the “A” and “B” shares. The main difference between the two forms of shares is that “A” shares are traded in local currency while the “B” shares are transacted in US dollars. The selling of shares in US dollars is meant to significantly promote the trading activities of international investors in stock markets in China.

We will write a custom essay on your topic a custom Essay on The Personal Stock Investing
808 writers online

Personal stock trading in China is quite dominant in all stock markets. However, like other stock markets across the world, stock markets in China are quite volatile. This implies that people who engage in personal stock investments in China are exposed to high risks of losing the value of their investments due to reduced stock market prices. However, individuals are provided with sufficient information with regard to market dynamics and projections that could help them to make essential decisions before they could invest in stock markets. Personal stock market investors in China could use their savings to purchase securities, or they could utilize loans from various financial institutions. Investors are required to provide some information in order for them to invest in stock markets in China. Some of the information with regard to an investor includes the name of age, country of origin, occupation, and main source of income, among others. The information is meant to prevent fraudulent activities in stock markets, which could negatively impact their performance outcomes.

The stock market in the US and personal stock investment

In the US, the main stock market is the American Stock Exchange, which is based in New York. It attracts both foreign and local investors who commit their funds to a variety of securities in the US. The stock market in the US is one of the best income generation avenues for the country. Its value is worth over one billion US dollars. Although the prices of the securities traded in the US vary based on several factors, the US government plays a great role in controlling economic and political events that could negatively impact the economy of the country.

Personal stock investment is quite significant in the US. Individuals are encouraged to invest in securities in anticipation that they could realize the benefits of improved prices. However, investors are scrutinized before they could invest in the US stock market. They are required to prove their identities and sources of income. In fact, the US stock market is one of the most well-regulated stock markets across the world.

Print
Need an custom research paper on The Personal Stock Investing written from scratch by a professional specifically for you?
808 writers online
Cite This paper
Select a referencing style:

Reference

IvyPanda. (2022, April 5). The Personal Stock Investing. https://ivypanda.com/essays/the-personal-stock-investing/

Work Cited

"The Personal Stock Investing." IvyPanda, 5 Apr. 2022, ivypanda.com/essays/the-personal-stock-investing/.

References

IvyPanda. (2022) 'The Personal Stock Investing'. 5 April.

References

IvyPanda. 2022. "The Personal Stock Investing." April 5, 2022. https://ivypanda.com/essays/the-personal-stock-investing/.

1. IvyPanda. "The Personal Stock Investing." April 5, 2022. https://ivypanda.com/essays/the-personal-stock-investing/.


Bibliography


IvyPanda. "The Personal Stock Investing." April 5, 2022. https://ivypanda.com/essays/the-personal-stock-investing/.

Powered by CiteTotal, citation creator
If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Request the removal
More related papers
Cite
Print
1 / 1