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.

Let's take a closer look at how stock market participants participate in its functioning and what their activities involve.

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.

Subsequently, decisions on additional issues or stock splits are made by the board of directors, which includes representatives elected by shareholders.

It is the board of directors and shareholders who subsequently exert a significant influence on the price of the company's securities, as they are responsible for decisions on issues, stock splits, and dividends.

The state is definitely a participant in the stock market, as it regulates its activities through laws and, through its institutions, issues licenses for stock exchange operations to brokerage firms:

The government's influence on stock prices is enormous. It can not only restrict the circulation of a particular security, but also, with a new law, collapse the stock price of an entire industry or, conversely, raise its value.

Professional participants include brokerage firms , investment funds, and private investors—all those who buy or sell securities for profit,

or act as intermediaries, providing access to exchange trading for 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 stock market manipulation.

Funds and commissions insure brokers' risks and resolve disputes between brokerage firms and their clients.

They have an indirect impact on stock exchange activity without directly participating in the securities trading process.

By monitoring the news of a particular stock market participant, you can predict stock prices and profit by opening buy or sell trades depending on whether the news is positive or negative.

For example, an additional issue usually leads to a decrease in stock prices, while a stock split, on the contrary, increases their value.

Additional information on the topic:

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Brokers for stock trading - https://time-forex.com/vsebrokery/brokery-fondowogo-rynka