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 Form 4 Business studies lessons and notes on international trade

The stock exchange and common terms used in stock exchange

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Answer Text:
THE STOCK EXCHANGE MARKET
This is a market whereby the buying and selling of shares and other securities takes place. Shares are the smallest units of capital that can be sold to persons by a company for them to become share holders. Other securities traded in this market includes debentures (a unit of loan sold by the
companies to the members of the public), government bonds (a long term borrowing certificate by the government from its people) and government treasury bills ( a short term borrowing certificate by the government from its people).
Common terms used in stock exchange
-Securities:- a document certifying that one has lent money to the issuer (the
person borrowing the money)
-Broker:- a person/firm registered by the capital market authority (CMA) to buy and sell shares and other securities on behalf of their clients
-Jobber:- a person/firm who buys and sell shares and other securities with an aim of making a profit
- CDSC account:- Central Depository Settlement
Corporation account for mobilizing the shares and securities to be traded on at the market


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