Investing: Market and Stock Exchange

Investing has become very popular in the last decade. More and more private individuals see it as a great way to earn some extra money and are trying their luck on the investment market. You may also be considering investing yourself, but you are still unsure. In this article you will find introductory information about the investment market and the stock market to help you get started. The poor investment results of recent years could perhaps be a reason to no longer want to invest, but nothing could be further from the truth; investments are still being made on a large scale. Moreover, it is often assumed that these bad times are precisely the time to get in and start investing ; After all, the stock market is low and it is expected that it will mainly rise in the coming years, which can bring you a profit. To help you get started in the investment world, this article provides a brief introduction to the investment market and the stock market .

Investment market

Investing is in fact an uncertain form of saving; After all, an investor cannot be sure whether the money invested will also yield a return. That is why it is always recommended to only invest money that you do not need. Whether an investment will yield a return is determined by developments on the stock exchange (or the market for investments; this is where supply and demand come together). Another factor that determines your profit is the results of the company or organization in which you invest. Risks can never be ruled out, because ‘results achieved in the past do not provide a guarantee for the future’ . However, in general you will make more profits if you invest over a long term, so keep this in mind when you start investing. If you want to make a lot of money in the short term, investing may not be suitable.

The fair

A common beginner’s mistake in investing is assuming that one does business with the stock market. This is not true, investing is done through the stock exchange , but no business is done with the stock exchange itself. The stock exchange is merely the medium through which trading can take place. Secondly, the invested money does not become the property of the organization or company in which the investment is made. Except when new shares are issued, because then the organization or company still owned the shares. The invested money goes to the seller of the shares , i.e. to the person who owned them (this way you will also receive money when you sell the shares again). So when a company issues new shares, the proceeds go directly to that company. But when selling shares that have been in circulation for some time and are owned by an investor, the money will go to that investor. The organization of securities trading on the stock exchange is provided by Amsterdam Exchanges NV . The stock exchange, or Euronext Amsterdam , ensures that trading in options and securities remains possible. For this purpose it provides, among other things, a building, as well as the necessary technical infrastructure and a trading system. In addition, the stock exchange regulates the administration and handling of securities trading. The Netherlands Authority for the Financial Markets supervises the various institutions active in the investment market, but the stock exchange itself also has its own inspection service.