What to do to begin to operate in the stock exchange market?

Importance of Information: Its evident that for an investor to operate at the stock exchange markets it has to have good information. A correct decision will depend on the quantity and the quality of information that the investor can acquire.

The information must be:

• Legal
• Correct
• Clear
• Sufficient
• To divulge it on time

Presented in a way that its definitions and possible diffusion may be understood and known easily

The legislation about the stock exchange market (protection of the investors) or the Mercantile Legislation (the defense of the partners), taking in account the importance of the information Y with the finality of favoring the development and transparency of the stock exchange market, they require from the issuing companies to divulge authentic and sufficient information that must be spread quickly towards the investors.

Legal Information
When a security is issued, it is obligatory to have it registered at the organism in charge of watching and supervising the market, enclosing a series of documents.

It must be diffused publicly and must be given freely to the investors. An informative pamphlet with respect to the emission of securities that are being launched must be done.

This pamphlets must specify all the basic data that will permit a judgment of the value of the investment proposed: characteristics of the securities, rights and obligations of the holders, information about the issuing company, etc. t also must include the conclusions of the auditing of the financial statements accounts of the issuing company. Etc. It also must include the conclusion of the auditing of the financial statements accounts of the issuing company.

The objective of this type of information is to make to know the real situation of the issuing company.

The objective of this type of information is to make to know the real situation of the issuing company.

Periodical Information
This type of information must be offered each time there is a substantial change in the issuing company.

The idea is to offer all the information considered important by the issuing company for the appraisal of their securities. Usually it includes some for annual communications plus other complementary in case there are modifications on the last months before the closing of the exercise.

In these communications it is remitted, almost always quarterly, the declarations of not having been produced any substantial changes on the financial statements. And, semiannually, more ample information that will include the changes done or the prevision of doing any financial operation, the sales or investments done, a situation balance, an account of profits ad losses, etc.

The objective is to facilitate the following of the fundamental variables of the company.

Outstanding Information
It must be offered at the moment that certain events happen, such as: obtaining of contracts, fusions, division, treasury problems, etc. these affect the companies, in their financial statements, profitability perspectives, or directly to the own business projects and also the appreciation there is of the company changes. In consequence, they have influence on the price of the shares of these companies at the stock exchange market.

This type of information, outstanding facts for a company, must be divulged in the quotation bulletin or in the press.

The objective is to avoid that sensible information for the forming of prices might be object of rumors.