Stock market participants or those who can influence the price of shares

In order to successfully trade in the stock market, you need to understand at least a little about who determines the value of securities.

How their decisions can affect the value of shares, how to use this information when forecasting rates and making plans.

Stock market participants are all those who issue, regulate the process and influence the demand or supply of securities.

At the moment, these include issuers that issue securities, investors who finance the issue, the state regulating the circulation of these securities, organizations that protect the interests of investors, professional participants who make money from this process.

Each of the listed groups influences the process of securities circulation in its own way, pursuing certain goals.

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Let us consider in more detail how stock market participants take part in its functioning and what their activities consist of.

Stock market participants:

Issuers are companies that issue securities.

The decision to issue shares is made by the founders of the joint-stock company, the owners of the company. Later, decisions on an additional issue or split of shares are already made by the board of directors, which includes representatives elected by shareholders.

It is the board of directors and shareholders that subsequently have a rather strong influence on the value of the company's securities since they are responsible for decisions on the issue, split and calculation of dividends.

The state is definitely a participant in the stock market because it regulates its activities through laws, and through its institutions it issues licenses to brokerage companies to conduct exchange activities:


The influence of the state on the price of shares is simply enormous; it can not only limit the circulation of a certain security, but with a new law, bring down the stock price of an entire industry or, on the contrary, raise their value.

Professional participants - brokerage companies , investment funds, private investors.

All those who buy or sell securities for the purpose of making money. Or acts as an intermediary, providing access to exchange trading to smaller investors and speculators.

These stock market participants directly influence supply and demand; for example, a large investment fund can easily raise or lower the price of a particular stock through manipulation on the stock exchange.

Funds and commissions – are engaged in insuring the risks of brokers and regulating disputes arising between brokerage companies and their clients:


They have an indirect influence on exchange activities, without directly participating in the process of securities circulation.

By monitoring the messages of a particular stock market participant, you can predict the stock price on the stock exchange and make money by opening buy or sell transactions, depending on whether the news was positive or negative.

For example, an additional issue in most cases leads to a decrease in the price of shares, and a split (fragmentation), on the contrary, increases their value.

Additional information on the topic:

Free stock trading training - https://time-forex.com/osnovy/obuchenie-fondowaj-torgowlia
Brokers for stock trading - https://time-forex.com/vsebrokery/brokery-fondowogo-rynka

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