A share market, equities market, or share exchange is an arrangement where different groups of buyers and investors have legal claims on different companies; these can include securities listed on the New York Stock Exchange (NYSE) or other exchanges. Shareholders can claim ownership in a company by buying shares from the company, for a predetermined price. Shares can be bought by individuals or institutions. There are many different types of shares and it depends upon a number of factors as to what is offered in a share market. There are common shares, preferred stocks, preferred units, common equity, debt stocks and emerging market securities. There are also different ways of trading in shares, such as direct trading, indirect trading and online trading.
An important aspect of the share market is that there is a primary and secondary market for shares. The primary market for shares is generally referred to as the public share market or the NYSE, while the secondary market is usually referred to as the Pink Sheet and the Over-the-Counter Bulletin Board (OTCBB). There are risks associated with trading in the secondary market for shares and also risks in buying and selling shares in the primary market. For instance, when you buy shares in the NYSE you have guaranteed a minimum price for your shares and also you have limited say as to how your shares will be sold and how they will be valued.
One type of share market is the Pink Sheet market. It is very similar to the NYSE, however there are differences. The Pink Sheet market allows for limited share sales. The Pink Sheet does not guarantee a minimum price for the shares, nor does it guarantee that the shares will be listed on the major exchanges like Nasdaq and NYSE. There are hundreds of different pink sheets and they are traded all around the world on brokerages and stock exchanges.
Another type of share market is called the bull market and the primary mirror of the NYSE and the Pink Sheet markets are the Nasdaq and the NYSE. When you buy shares in the NYSE and then trade them on the Nasdaq or the Pink Sheet you are essentially trading in two different shares. There are pros and cons to both of these types of transactions, and the best way to learn about them is to do your research.
Lastly, another type of share market exists called the Pink Sheet, but unlike the NYSE and the Nasdaq, the Pink Sheet does not sell or even issues shares. Instead, this market allows individual traders to buy and sell shares of companies that are not registered with the NASDAQ or the NYSE. These companies may include upstarts that are in the process of getting their public forms done and they may also include companies that are in bankruptcy or are on the verge of going out of business. There are many people that hold stocks in these kinds of companies because there is no legal trading of these kinds of companies and they can provide a certain stability for investors.
These three types of share markets are pretty much the basic ones out there. They are what most people think of when they hear the words “share market”. There are other kinds of share exchanges though such as the Pink Sheets and the Nasdaq. While they work pretty much the same way these two share exchanges have differences that make each one unique. Investing in the right kind of share market makes all the difference. If you want to be successful then you need to educate yourself about how the various share exchanges work and how you can invest in the right ones at the right time.