Abu Dhabi Securities Market was established in 2000, the market has a legal personality and fiscal liberty and administrative and supervisory and executive powers necessary for the exercising of his maps.
“ Market aims to supply an chance to put nest eggs and financess in securities in the involvement of the national economic system and guarantee the safety and truth of minutess and ensures interaction of the forces of supply and demand to find monetary values and to protect investors and beef up the foundations for proper handling and just and tighten controls on trading in securities to guarantee the safety actions and processs, and develop Awareness of the investing to guarantee that nest eggs are channeled to productive sectors, lending to the accomplishment of fiscal and economic stableness ” .
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Economic functionsA of theA Stock Exchange
Stock exchange has a great impact on the economic degree in the state. In this subdivision we will advert some of the map of the stock exchange.
Development economy: stock exchange promoting the investing in the field of securities and nest eggs are channeled to function the national economic system which is reflected most clearly in a province of little rescuers who do non hold the small tickets which can non make separate undertakings and so prefer to purchase securities a B T a fiscal step of fiscal energy which helps to function the intents of economic development
Aid in support: investing in stock exchange helps to reassign of financess from loaners to borrowers. The loaners are cut downing the rate of consumer disbursement in the current clip and salvaging portion of it is willing to acquire higher incomes in the hereafter when the clip comes-term recovery of these loans.
Contribute to the funding of development programs: in most clip, the authorities may non hold adequate money to pass on the undertaking, so the authorities will travel to inform their stock to the populace.
Directing resources to countries most profitable: the command and inquire trading seeking to accomplish high efficiency in directing resources to the citizens to industrial and commercial. To make this degree of efficiency, it should availability this aim: the monetary values efficiency, the quality of trade, equity markets, and security.
Achieve equilibrator monetary values for securities: If the stock market based on a house foundation and strong will find the monetary values of securities traded in a realistic mode and on the footing of sufficient cognition and a high grade of justness.
The possibility of measuring companies and investing undertakings expeditiously: by contribute to raising the consciousness of investors and the atrocious world of companies and undertakings
Provide transparence: The stock exchange requires companies whose securities are listed on the revelation of all their informations to investors, including in bend creates a province of transparence reflects the economic world of the state and promote more capital to put in the state.
Types of exchanges
Since the stock market is a meeting topographic point for Sellerss who are purchasers who have the supply side demand side there are many types of exchanges, including:
Employment exchange: The topographic point where workers run into together and keep meetings to form themselves and see the proposals for assorted services that could be offered by work Stock Exchange.
Merchandises exchange: It besides called the trade exchange which a topographic point Where they are sold the stuff and basic merchandises such as cotton and sugar which are covering in this market on footing of samples displayed different merchandises, where merchandises has sold several times and determined by the domestic and international monetary values.
Stock value exchange: Transportation of ownership of these portions and bonds from manus to manus ; it is the most celebrated type of stock exchange. These stocks and bonds are covering through agents and mediators.
Currency exchange: Is one of the markets covering in foreign exchange and are located in all parts of the universe, peculiarly in major centres such as New York and London, Paris and Tokyo, linked to these markets to each other through computing machine webs and telephone, facsimile and teletypewriter and other agencies of communicating.
Modus operandiA in theA stock market
Stockss markets are by and large operate on the footing of Bid and ask. There are no direct contacts between investors, the relationship between investors done by mediators or agents. In this instance each investor will hold contract with the agents, he will make up one’s mind to purchase or sell depended on the market monetary value or the investor will find the monetary values for agent, and the monetary values will impact by the Numberss of ask and command.
The individual concerned in the execution of the securities firm company enrollment bid, whether for sale or for purchase on the stock exchange and trading system every bit shortly as confirmation of client balances of securities in the instance of a sale of its assets or hard currency in instance of purchase.
CirculationA on the same twenty-four hours
To purchase and sell Securities at the same twenty-four hours to increase the net income in short clip, which led to increase in the value and Volume of the trade. Besides it protects the investor from the altering in the monetary values in the long clip, but it has a hazard for new investors who do n’t hold adequate experience in expecting of monetary values alterations.
Are covering withA the Stock ExchangeA
Investors will cover with two types of people when they are covering with the stock exchange.
Direct people: the investor will cover with the agent and fiscal adviser, the agent who is responsible for dealing of purchasing or selling the stock and fiscal adviser which could be a individual or a company which specialize in fiscal adviser.
In direct people: it mean that the investor who will purchase the stock ca n’t cognize from who will purchase the stock, besides the investor who want to sell the stock, he will non cognize to whom the stock will travel.
A list of the best traded stocks and bonds in the UAE
Sorouh Real Estate Company
METHAQMethaq Takaful Insurance Co
RAKCCRas Al Khaimah Cement Company
FGBFirst Gulf Bank
GCICGreen Crescent Insurance Company
ADIBAbu Dhabi Islamic Bank
NBADNational Bank of Abu Dhabi
Unknown Author. ( n.d ) Retrieved January r3,2011, from hypertext transfer protocol: //www.adx.ae/English/AboutADX/Pages/MarketEstablishment.aspx )