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The Stock Exchange - for Beginners

What does it really mean to trade on a stock exchange?  Many people still believe that investing is a privilege maintained only by those who have enough funds to make their money  make more money for them. This is not the case. Investing on the stock exchanges is moving further and further away from this position and today,  it is accessible to everybody. The goal of the stock exchange is to allow anyone to trade securities and other financial products.

The stock exchanges were created to allow companies to raise money from a large pool of investors and to provide a market for investors to later sell their shares in those companies. The purpose of this is that these companies use the money raised for development, thus increasing their net worth and creating profit for their investors. Due to the difficulty of obtaining the funds from other sources, such as banks, it has become common for companies to issue themselves to the stock market. This is known as Initial Public Offering (IPO), Trading stocks from the various companies who have obtained an IPO, is done through computerized trading platforms, In recent years it has become common for independent traders to use trading platforms in order to manage their own portfolios.
Ways to invest in stocks include banks and brokers. The two substantial differences in trading via banks compared to trading via brokers. as that of commissions and technology. In most cases, due to their need to maintain a larger staff component, the commissions for trading via banks are  higher and can increase the costs of trading by up to 5 times more than through brokers.. Many brokers have state of the art trading platforms that are designed to help a private investor get the same advantages as an institutional trader. The majority of the banks have  trading platforms that are outdated.

Stocks

Stocks are the most common investment on the stock exchange. They grant the trader rights and partial ownership over the company in which he has invested .

ETFs

It  is  tracker of variety of different indexes, commodities and bonds, 

Options

An option represents a contract sold by one party to another party which offers the buyer the right to buy or sell  a share at  particular price 
 

Bonds

It is a fixed income investment in which an investor loans money to an entity  which borrows the funds for a defined period of time at a variable or fixed interest rate. 

Futures

Futures are financial contracts  that are purchased at a predetermined future date and price. 
 

Warrants

It is a derivative that confers the right, but not the obligation, to buy or sell a security at a certain price before expiration. 

Metals

This refers to the classification of metals that are considered to be rare and/or have a high economic value.
 

disclosure

http://www.mexem.com is a website owned and operated by Mexem Ltd.

Mexem Ltd is a European broker regulated by the CySEC, license No. 325/17

 

Mexem Africa Ltd Pty is a  broker regulated by the FSB license number 48325

Mexem has the required PI cover under the company Camargue insurance

 

Risk Warning: Mexem supplies brokerage services with regards to various financial instruments, including stocks, options, futures, futures options, ETF's, warrants, structured products, SSF's, bonds, funds and indices
All types of financial trading and investments, including such that are offered by Mexem, involve risks to the invested funds, and therefore require expertise, knowledge and understanding of risks, and may not be appropriate for all investors.

 

Before making any decision regarding financial trading or investment, you should carefully consider your investment objectives, level of experience and risk tolerance, and it is highly recommended that you consult an independent financial advisor before making any such decision.

Mexem may from time to time provide general market reviews, classes and/or seminars on various subjects, which do not constitute investment advice. When doing so, Mexem does not consider your investment objectives, level of experience and risk tolerance, and such services should not be seen as investment advice or any kind of recommendation. You should further note that past performances do not constitute a reliable indicator of future results.

The services provided by Mexem are marketing and agency services for third parties providing the brokerage services, as well as brokerage services provided by itself.

 

COMPLAINTS & OMBUD

We welcome positive as well as negative comments. Please feel free to discuss complaints with your consultant or the management or Compliance officer of Mexem Financial Managers. We urge clients to make a complaint in writing.  Mexem Financial Managers is committed to deal with and resolve complaints with fairly, urgency, with discretion and confidentiality.   Complaints are best handled when made in written or electronic format.
Complaints not resolved may be escalated to the Ombud for Financial Services Providers.
Salomy Schoeman

Tel: 012 470 9080 Fax: 012 348 3447 E-mail: info@faisombud.co.za FAIS OMBUD Po Box 74571 Lynwood Ridge 0040


Any use of the Mexem website and all trades made through it are subject to our Terms and Conditions, including all annexes thereof, which you must read thoroughly before you start trading on the website.

Risk Disclosure: Mexem Ltd offers various types of investments through the acquisition of various financial instruments: various financial instruments, including shares, options, futures contracts, options, bonds, options, contracts, individual share contracts, ETFs, structured products and mutual funds. Investments and trade involve the risk of invested capital, including those offered by Mexem, and therefore require skill, knowledge and understanding of risks, and are not suitable for everyone.
Before deciding on investing or trading with Mexem, you must consider your investment and / or trading goals, your level of experience, and your ability to absorb losses as a result. In addition, you should consider that past performance cannot be a measure of the future performance of financial instruments.
Options involve risk and are not suitable for all investors. Before investing in options, read the "Characteristics and Risks of Standardized Options". For a copy visit http://www.theocc.com/about/publications/character-risks.jsp. Before trading, clients must read the relevant risk disclosure statements on our Warnings and Disclosures page - http://www.interactivebrokers.com/disclosures. Trading on margin is only for sophisticated investors with high-risk tolerance. You may lose more than your initial investment. For additional information regarding margin loan rates, see http://www.interactivebrokers.com/interest. Security futures involve a high degree of risk and are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading security futures, read the Security Futures Risk Disclosure Statement. For a copy visit http://www.interactivebrokers.com/disclosures. There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets.

 

 

“Interactive Brokers LLC” is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any financial institutions or financial service providers, including brokers, introducing brokers, third-party financial advisors, or hedge funds.  Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation and assumes no liability to the accuracy or completeness of the information provided on this website

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