Tag Archives | exchange

Tokyo Stock Exchange (TSE)

Tokyo Stock Exchange (TSE) Definition

The Tokyo Stock Exchange (TSE) is among the world’s largest by trading volume and market capitalization. Furthermore, the TSE listed firms are around 2,400.

Tokyo Stock Exchange (TSE) Meaning

The TSE indexes are both the Nikkei 225 and the TOPIX index. The Nikkei is a price weighted index for the top 225 Japanese companies. Whereas, the TOPIX index is a value weighted index of the “first section” companies. The TSE exchange has three different groups or sections to the market. The first section includes the largest companies in Japan as well as whoever would like to be listed on the TSE market. Then the second section contains mid-sized firms. Finally, the third section is commonly known as the “Mothers” section. The Mothers section of the TSE is for smaller companies that are emerging or are in a high growth stage of development.

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tokyo stock exchange

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tokyo stock exchange

See Also:
New York Stock Exchange (NYSE)
National Stock Exchange of India (NSE)
London Stock Exchange (LSE)
Bombay Stock Exchange (BSE)

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Singapore Stock Exchange (SGX)

Singapore Stock Exchange (SGX)

A merger between the Stock Exchange of Singapore and the Singapore International Monetary Exchange formed the Singapore Stock Exchange (SGX) in 1999. Furthermore, it is one of the largest Asian exchanges in terms of market capitalization and trading volume.

Singapore Stock Exchange (SGX) Meaning

The SGX is well known for its derivatives trading in addition to its equity trading. The make-up of the SGX market is approximately 25% in derivatives while the other 75% in equities. It also has approximately 775 companies listed and the SGX market capitalization is around 650 billion in Singapore Dollars. The SGX index is the Straits Times Index, and is considered to be a key indicator of the Asian markets. The Straits Times takes the 30 largest companies and market-value weights these stocks.

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singapore stock exchange

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singapore stock exchange

See Also:
Toronto Stock Exchange (TSX)
Hong Kong Stock Exchange (HKEX)
Shanghai Stock Exchange (SSE)
Tokyo Stock Exchange (TSE)
Bombay Stock Exchange (BSE)

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Securities Exchange Act of 1934

See Also:
Secondary Market
Securities Act of 1933
New York Stock Exchange (NYSE)
Primary Market
Sarbanes Oxley Act of 2002 (SOX)

Securities Exchange Act of 1934

The Securities Exchange Act of 1934 deals with the regulation of secondary market transactions, or outstanding securities in the market (which can be traded on a daily basis). The Securities and Exchange Commission (SEC) regulates this act.

Securities Exchange Act of 1934 Meaning

The Securities Exchange Act of 1934 was established after the stock market crash of 1929 – the following Great Depression. The 1934 Securities Exchange Act is meant to provide meaningful and relevant information to the average investor. This ensures that the investor is not mislead in anyway so that they are able to make well informed decisions. The Securities Exchange Act regulations include the need for quarterly and annual audits by an accounting firm. These accounting firms then attest to the accuracy of the statements.

The Securities Exchange Act of 1934 thus ensures that there is no fraud that exist within the company. It also deals with insider trading. If an investor has information that is non-public in nature then, then under the 1934 Securities Exchange Act, he/she may not act on it until the information has gone public. The idea is to provide a fair and equal market so there are no unusual transactions to set the market adrift.

securities exchange act of 1934

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Shanghai Stock Exchange (SSE)

See Also:
Tokyo Stock Exchange (TSE)
National Stock Exchange of India (NSE)
Bombay Stock Exchange (BSE)
Frankfurt Stock Exchange (FSE)
Hong Kong Stock Exchange (HKEX)

Shanghai Stock Exchange (SSE)

The Shanghai Stock Exchange (SSE) is the third largest exchange in terms of market capitalization. The exchange is currently not open to all foreign investors.

Shanghai Stock Exchange (SSE) Meaning

The Shanghai Stock Exchange was formed in the 1842 as one of the first to be established in Asia and the first in China. The SSE Exchange trades in bonds, funds, and two classes of stock. The two types of stock are the Class A and Class B stock. At first the Class A stock was limited to Chinese Investors while the Class B remained open to all investors. However, after reforms the SSE changed its format slightly allowing a few foreign investors to invest in the Class A stock with several limitations. The class B stock remained open to all foreign and domestic investors after the reformation. The Class A stock is also currently listed with the local Yuan currency while Class B is listed under the U.S. dollar. The SSE exchange main indexes are the SSE 180 index and the SSE 50.

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shanghai stock exchange (sse)

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Over the Counter Bulletin Board (OTCBB)

Over the Counter Bulletin Board (OTCBB) Definition

The Over the Counter Bulletin Board or OTCBB is an electronic quotation system used for smaller stocks that do not meet the credentials to be listed on the NASDAQ or National Securities Exchange.

Over the Counter Bulletin Board (OTCBB) Explained

The OTCBB is a market for smaller companies that do not meet the market capitalization, minimum stock price, or other requirements needed to be listed on the larger exchanges. Because of the low share prices, the stocks are often referred to as OTCBB penny stocks. The only requirement of the OTCBB listing requirements are that a company has to have audited financials following the requirements set forth by the SEC. However, OTCBB pink sheets are listings that do not have the proper SEC filings. Because they are not filing to the SEC, pink sheets are often more risky than the other stocks listed on the Over the Counter Bulletin Board.

Over the Counter Bulletin Board (OTCBB) Example

For example, Wawadoo Inc. is a startup company that manufactures widgets for the market. Although it is a small company right now, management believes that the company has great growth potential. Management believes they can list it on the NASDAQ eventually; however, it does not meet the requirements for now. As a result, Wawadoo has decided to go ahead and list itself on the OTCBB to establish the company in the market. As it grows, they will move into the larger exchanges.

Over the Counter Bulletin Board

See Also:
Employee Stock Ownership Plan (ESOP)
Return on Common Equity (ROCE)
Treasury Stock (Repurchased Shares)
Common Stock
Return on Equity Analysis

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National Stock Exchange of India (NSE)

See Also:
Common Stock Definition
Over the Counter Bulletin Board (OTCBB)
Currency Exchange Rates
Non-Investment Grade Bonds (Unsecured Debentures)
Australian Securities Exchange (ASX)

National Stock Exchange of India (NSE) Definition

The National Stock Exchange of India or NSE for short is the largest stock exchange market in India. It is the third largest in the world in terms of trading volume as well as the second fastest growing in the world today.

National Stock Exchange of India (NSE) Meaning

Located in Mumbai, India the NSE stock exchange was started by the Indian government in the year 1992. The National Stock Exchange is the largest next to the Bombay Stock Exchange (BSE). It can be used for most of the markets that you would find in any of the stock exchanges like stocks, bonds, futures, derivatives, mutual funds, etc. The NSE’s hours are from 9:00 AM – 3:30 PM Indian Time. The two leading owners in the NSE stock is the New York Stock Exchange (NYSE) as well as Goldman Sachs. Other owners include local banks and financial institutions around India.

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National Stock Exchange of India

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National Stock Exchange of India

 

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Nominal Interest Rate Definition

See Also:
What is Compound Interest
Effective Rate of Interest Calculation
Interest Expense
When is Interest Rate Not as Important in Selecting a Loan?
Interest Rate Swaps

Nominal Interest Rate Definition

A nominal interest rate is the interest rate rate quoted on lending and borrowing transactions. Nominal rates represent the rate of exchange between current and future dollars, unadjusted for the effects of inflation. Since nominal rates are not adjusted for inflation, they do not convey the prices of lending and borrowing transactions as accurately as real interest rates.

Nominal Interest Rate, Real Interest Rate

Nominal interest rates are not adjusted for inflation. Whereas, real interest rates are adjusted for inflation. Make the adjustment with current or projected inflation rates. Furthermore, real interest rates offer a more accurate representation of the prices of lending and borrowing transactions. To calculate real interest rates, use the following formula:

Real Interest Rate = Nominal Interest Rate – Inflation Rate

For example, if a lender offers a loan with a nominal rate of 5% and the inflation rate is 3%, then the lender will earn real interest of 2%. However, if the inflation rate is 7%, then the lender will essentially be losing value on the loan.

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Nominal Interest Rate Definition

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