Stock market

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The stock market ( English market stock ) is a market segment of the capital market that the stock exchange and off-exchange trading with stocks included. The bond market is a complementary term .

General

The financial markets are divided into money and capital markets . The capital market, in turn, is made up of the equity and bond market segments. As with all markets, there are also trading objects and market participants on the stock market who evaluate market data in order to create market transparency as part of the market analysis and observe future market developments . They show a certain market behavior that is expressed through supply and demand . Trends on the stock markets are evaluated with the help of trend analysis . The core of the stock markets are the stock exchanges .

history

The stock market is as old as the stock. The first share ever represented a share of 12.5% ​​in the Swedish copper mine "Stora Kopparbergs Bergslags Aktiebolag" in Falun, which was first mentioned in a document in June 1288 . In the contract concluded by the East India Company in September 1599, its founders undertook to raise a capital fund of £ 30,133, which was divided into 101 shares ( English company shares ). This was later followed by the United East India Company (VOC), whose shares were first traded on March 3, 1603 between Jan Allertsz and Maria van Egmont. The six chambers ( Dutch kamers ) existing companies had spent the first that equities worldwide. However, the shareholders ( Dutch participants ) of the VOC remained tied to their system for ten years; After the interest-bearing repayment in 1612, the shareholders were given the opportunity to subscribe for a further ten years. The first stock exchange came into being with the Amsterdam Stock Exchange ( Dutch Amsterdam beurs ) in 1612. It is considered to be the first stock exchange that enabled permanent stock trading in the 17th century. The stock exchanges did not function as floor exchanges from the start, because suppliers and buyers were represented by stock exchange traders , the standardized trading objects (shares) were stored elsewhere, the stock exchange prices were not negotiated between suppliers and buyers, but left this to the stockbrokers .

The first German shares reached in 1785 on the Berlin Stock Exchange on the exchange list . Since it was founded on June 5, 1739, it initially traded exclusively in bills of exchange until the "Emdener Heringsfang-Company" founded in 1769 - which had a "Comptoir" ( branch ) in Berlin since 1785 - had its shares traded on the Berlin stock exchange. Further German stocks appeared on the Berlin stock exchange list after 1810, namely stocks in the "Zuckersiederey" (founded in 1749), "Seehandlungs-Societät" (October 1772), "Tabacks-Regie" (November 1808) and "Assekuranz-Societät". Railway shares were also added by 1850 . The Berlin Stock Exchange was able to introduce Prussian government bonds by decree of October 27, 1810. The introduction of shares on the Vienna Stock Exchange began in 1818 with the share of the Austrian National Bank . The number of shares there rose from eight in 1848 to 39 at the end of 1867.

In 1865, when the stock market was still regarded as the sideline of capitalism , Karl Marx described the stock corporation as the “result of the highest development in capitalist production”, even if the legal restrictions on liability could lead managers to take excessive risks. The stock exchanges in Germany experienced rapid market development during the early days with the industrial boom . Share trading was now also introduced by regional stock exchanges such as the Munich Stock Exchange (founded in December 1830), in March 1844 the Kölnische Zeitung reported the first share price of 131 ½ of the Cologne-Bonn Railways on the Cologne Stock Exchange , followed by the Stuttgart Stock Exchange (February 1861), Frankfurt Stock Exchange (share trading since 1871) or the Düsseldorf Stock Exchange (January 1875). A monthly stock index introduced in January 1870 already peaked in November 1872, but it was only 186.2 points. In the period of 1871-1873 in Germany 928 shares companies were established with a total capital of 2.78 billion dollars, the same period also 107 shares banks founded with a total capital of 740 billion marks, the Berlin Stock Exchange dominated after the end of the Franco-German War the German stock market in May 1871. The founders' crash led to the first black Friday on May 9, 1873 and caused the share price to fall by half; Of the 107 joint stock banks, only 34 remained at the end of 1873. As a result, the government changed the Stock Corporation Act in July 1884 and wanted to keep small savers away from the stock market with this amendment.

Stock exchange securities trading in Germany ceased in the course of the German banking crisis with the closure of the stock exchanges on September 21, 1931. After the Second World War, the Hamburg stock exchange resumed a "controlled open market" on July 9, 1945, and started here on March 11, 1952 also official trade. In countries with multiple stock markets, trading was heavily concentrated on one stock exchange, making it the main stock exchange. While the Paris stock exchange accounts for 95% of the French stock exchange turnover, the New York Stock Exchange achieves 80% of the turnover of all US stock exchanges. In Germany, too, the regional stock exchanges lost their importance; After the Second World War, the Frankfurt Stock Exchange developed into Germany's leading stock market, on which international stocks are also traded. Frankfurt accounts for around two thirds of all German stock exchange turnover, followed by Düsseldorf. Of the 10,700 companies whose shares were traded on the Frankfurt Stock Exchange in September 2014, just under 1,000 name Frankfurt as their home market, the rest are foreign shares.

Market participants and market data

As market participants, there are shareholders , investors ( institutional investors or private investors ), issuers , credit institutions as well as stock market traders and brokers on the stock market . The trading motive of these market participants can be investments , services (banks with security orders from their customers ), arbitrage or speculation . Market transparency is created primarily through stock exchange prices and the publication of company data by issuers. The market mechanisms cause price formation through supply and demand, which comes about through the market participants. Typical market data are the stock exchange price, the dividend yield and the stock index . While the dividend yield represents a kind of " market interest rate " as a reference value , the share index reflects the price development and the price level on the stock markets.

species

Generally there since November 2007 in all EU Member States , the market segments " Regulated Market " ( English regulated market ) and "exchange-regulated market" ( English regulated unofficial market ). While the "regulated market" is monitored by the European Union , the "regulated market" is regulated by the respective exchange itself. The previous German exchange segments "official market" and "regulated market" were added to the "regulated market" in November 2007 convicted. He puts on the Frankfurt Stock Exchange with the stock market segments General Standard and Prime Standard -building retail segments with higher transparency standards. Segment "exchange-regulated market" on the Frankfurt stock exchange in the open market ( English open market ), 2005 Since October Open Market called. In the open market there are currently the sub-areas Quotation Board (formerly Second Quotation ), Basic Board and Scale . The First Quotation area was abolished in June 2012 after a few scandals ( market manipulation , capital investment fraud ). With relatively few requirements and follow-up obligations, Scale is particularly suitable for smaller companies that want to go public.

With regard to circulation, a distinction is made between the primary and secondary market . While the stock corporations are presenting their new issues and issuing capital increases for the first time on the primary market, the shares already in circulation are traded on the secondary market.

Economic importance

The French economist Léon Walras described price formation in the Walras Law in 1898 using the example of the stock market and, among other things , set as hypotheses a sufficiently large number of buyers and sellers, an auctioneer (stockbroker) calling the starting price, binding quantity statements by buyers and sellers and the formation ahead of the market equilibrium . In contrast, share prices arise according to the General Theory of Employment, Interest and Money by the economist John Maynard Keynes , published in February 1936, through “conventions”, i.e. a common valuation of market participants, which is mostly clearly influenced by moods . Although he considered these environmental conditions to be stable, he only saw stability as given if there were predominantly market participants who used their better level of information to maintain a stable price equilibrium on the stock market. Keynes' skeptical stance on the stock markets is expressed in particular by the fact that he classified the separation between owner and management and the permanent price fixing as destabilizing. The stock exchange price today reflects the market equilibrium through which the market is cleared .

Stock markets cover - at least partially - the need for capital to equity of companies as investors, the shares of a business start-up or capital gain. In addition, stock markets ensure the dissemination of company data and the company valuation through price formation with the result of the market capitalization typical of the stock market . However, this is not very meaningful because on the one hand it is exposed to strong fluctuations in valuation and on the other hand it does not show the inflow or outflow of money. Stock markets allocate resources in that stock prices emit signals about ownership of stocks and ideally reflect all available information . The stock market enables economic growth because the company financing is partly taken over by shareholders and these capacity expansions are co-financed through start-up or expansion investments. The equity and bond markets play complementary roles in financing growth.

The market efficiency hypothesis , which can also be applied to stock markets and which was set up by Eugene Fama in 1970, states that the stock market can process information immediately and express it in prices. The stock market is efficient in terms of market information when no market participant is able to make profits on transactions through technical analysis , fundamental analysis or insider trading .

The market volume of shares in circulation worldwide was in 2015 a total of 146.5 trillion US dollars market value . North and South America accounted for around 18% of this, followed by Asia / Pacific (14%) and Europe / Africa / Middle East (6%). The market volume ( nominal values ) on the German bond market amounted to 3.1 trillion euros in 2014, while the stock market had a volume of 1.5 trillion euros. This means that the stock market is only half the size of the bond market.

Individual evidence

  1. ↑ Erich Schäfer , The Enterprise , 1963, p. 28
  2. ↑ Heinz Duthel, Basel I, II, III - Capital - Credit Risk / Lending , 2013, p. 59
  3. ↑ Ralf Mehr, Societas and universitas , 2008, p. 315
  4. ↑ Lodewijk Petram, The World's First Stock Exchange , 2011, p. 16
  5. ↑ Pravir Malik, Redesigning the Stock Market , 2011, o. P.
  6. ↑ Hans Hauptmann, Das Bankgeschäft: A practical guide for banking and goods transactions , 1892, p. 5
  7. ↑ Kurt Bösselmann, The Development of the German Stock Corporation in the 19th Century , 1939, p. 29 f.
  8. ↑ Hans Hauptmann, Das Bankgeschäft: A practical guide for banking and goods transactions , 1892, p. 5
  9. ↑ Thorsten Beckers, European financial centers in competition , 2006, p. 99
  10. ↑ Karl Marx, Das Kapital - Complete Complete Edition in 3 Volumes: Critique of Political Economy , Volume 3, 1865, p. 428
  11. ^ Otto Donner, Die Kursbildung am Aktienmarkt , 1934, pp. 98 ff.
  12. ↑ Christian E. Elger / Friedhelm Schwarz, Neurofinance: How Trust, Fear and Greed Make Decisions , 2009, p. 21
  13. ↑ Gabler Bank-Lexikon, 1988, Sp. 855 f.
  14. ↑ Gabler Bank-Lexikon, 1988, Sp. 855 f.
  15. ↑ Yu-Hui Liu, Procedure for an Initial Public Offering on a German Stock Exchange and the Role of the Auditor , 2013, p. 11, FN 75
  16. ↑ Léon Walras, Études d'économie politique appliquée , 1936, p. 463
  17. ↑ John Maynard Keynes, The General Theory of Employment, Interest and Money , 1936, pp. 152-158
  18. ↑ John Maynard Keynes, The General Theory of Employment, Interest and Money , 1936, pp. 152-158
  19. ↑ UNCTAD Trade and Development Report, 2008, p. 93 (PDF; 1.1 MB)
  20. ^ Eugene F. Fama, Efficient Capital Markets: A Review of Theory and Empirical Work , in: Journal of Finance vol. 25, 1970, p. 383
  21. ↑ Ross Levine / Sara Zervos, Stock Markets, Banks, and Economic Growth , in: The American Economic Review vol. 88, 1998, p. 539
  22. ↑ Rainer Ellenrieder, Synergetic Capital Market Models , 2001, p. 172