In: Economics
1. Establishing a market to raise capital through institutions through a centralized trading area that links capital savers with those who want to raise capital. Trading on Wall Street can occur in many ways, including but not limited to issuing bonds or selling equity in a company by issuing stocks. Wall Street makes capitalism work by transferring money quickly to the most profitable uses — with the help of government regulations
2. Facilitating a secondary market for current stock and bond owners to find parties willing to buy their securities so they can collect cash. Such facilitation makes markets more efficient, as investors become more assured that their investments can be used as a source of liquidity. As a consequence, there is typically competition for lower risk premiums.
Trading on all sorts of markets, including the Wall Street stock and bond markets, entails a variety of variables and processes that influence prices. You will consider market makers at the center of all trading exchanges. To promote the flow of money and trade, these market makers, also known as broker-dealers, are incorporated into the trading network.
Generally, most investors assume that traded stock values are dependent on factors such as shifts in management, news reports, and corporate behavior. What many investors are still unaware of is that market producers and the supply and demand for a traded security on any given day may also have a significant effect on a security. Market participants come in different ways, from individuals on the trading floors to electronic communications networks. Any deal on an exchange needs a counterparty willing to take the trade on the opposite side. Market makers act as a go-between, and receive a small fee in the process for their support.
The U.S. attack on Iraq late yesterday sent ripples through world financial markets and was supposed to weigh on American stocks when markets opened Futures contracts on both the industrial average of Dow Jones and the index of 500 stocks of Standard & Poor, an indication of how prices will behave this morning, dropped after news reports of the attack on Iraq that followed the American m Stocks were little modified during trade, as it became obvious that an assault became probable. The industrial average of Dow Jones fell 32.70 points to 8,790.60, while the stock index of S&P slipped to 1,161.94 0.89 points. The Nasdaq index fell 3.24 points, to 2,009.36.
Mostly Asian shares were lower in today's afternoon trading but the changes were fairly limited compared to recent trading. In Japan and Hong Kong, big indexes were down less than 1 percent, in Singapore and Malaysia a little over 1 percent and in South Korea 2.5 percent. Prices of bond markets grew, and yields going in the opposite direction ended lower just as Iraq's official word arrived at 5 p.m. The price of the 30-year issue of the Treasury rose from 18/32 to 104 3/32; its yield dropped from 5.02 to 4.99%