Syndicate
Agents that Intervene in the Stock Exchange Market
On the stock exchange market several types of agents intervene, they are physical or juridical persons.
- Suppliers of capital (savers): Companies or people interested in placing its liquid surplus in order to obtain a determined amount of gains.
- Requesters of capital (investors): They include the private companies and public institutions such as: the government, municipal governments, depurations, public enterprises, etc.
Finally, there are the intermediaries, who have as a fundamental mission to make the system more active by being the nexus between the security buyers. In Spain, the law of the stock exchange market determines two types of intermediaries: the authorized members of the market that negotiate the transactions and those who are not members of the market. These, in spite of not having any faculty for trading, can do several functions: as is receiving and carrying out stock exchange market orders, to mediate in the collocation of new emissions, to be depositaries of securities, to give credits related with the buying and selling of assets, etc
- The authorized members to contract are the stock exchange associations and the stock exchange agencies. Other possible intermediaries are: banks, saving banks, associations of funds administration, etc
Consider as the secondary market, official and regulated by its laws, in it you can buy or sell accepted securities for public contracting and of official negotiation.
Any investor that has some money and is willing to acquire some shares of any limited company that is being offered publicly, can go to the stock exchange market to buy it from those owners that wish to sell them. In this way, the stock exchange market performs a function that transfers the excess of liquidity from some economic agents (the savers) to others (the investors), being this one of its principle functions.
Surely if the stock market wouldn’t offer this possibility, the economic subjects would hardly be eager to acquire previously these securities. And in the same way, if they weren’t motivated to put its surplus of liquidity at the disposition of other requires of capital, most of the greatest economic projects wouldn’t be possible
Actually, there are millions of small and big suppliers of capital (savers) around the world that want to put its money on the stock exchange markets. This euphoria or popularity of the shares generate some positive effects about the circulation of financial assets due that they give liquidity and at the same time it reduces the transaction costs. In spite of it, these are not the main reasons as to why the investor goes to the stock market. He simply wants a greater gain with the minimum risk as Possible, although it is not always this way, because it depends on the profile of the investor.