vancouver stock exchange - Summary:1. What does Stock Market flo

As gambling attracts many people, so does the stock market. As loss and gain are part of gambling, so they are in stock markets. Most of the people are interested in easy money making processes than working hard. Few of us dont know what to do with the fortunes inherited from our ancestors and the excess money we make through our employment. Easy money making part of stock market often lures most of the people into it; however, not even fifty percent people involved in it really understand what a stock market has or how stock market works.

The process of buying and selling a particular number of shares of a company at a specific price is the basic working of stock market. At one end of stock market, people bid to get some quantity of shares of a particular stock for themselves or for other set of people or clients at particular rate. Sometimes, a person can even represent an organization to place a bid for a particular share. This is technically known as bid price. At other end, we can see that another set of people bidding try to get these stocks from the first set of people for a different price by asking them to sell, normally lower than what the first set of people would have bought those shares for. This is known as ask price. When there is a mutual agreement between the bidders and askers, a trade happens. You get only a marginal price difference between the bid price and the ask price, when the trade takes place on a heavy volume transaction stock.

After understanding the basics of stock market, and seeking the knowledge on bid price and ask price, we might wonder why would or should there be any fluctuation in the stock market. The answer for this universal question is very simple. There might be a company stocks that has been listed, which indicates that the company is ready to allow a particular quantity of its stock to be shared with public, that is, it would allow public to share its profit or loss with people who buys that percentage of stocks. Few people may continue to bid and ask for this share in the stock exchange. When there is a variation in the supply and demand, then the stock exchange fluctuates. For proper understanding in terms of simple words, it means that many people are demanding for the stocks of the company heavily; however, the people who are ready to sell them at that price are less. In that scenario, people who are confident about the companys growth and profits would be ready to get the stock for higher price than the existing current price. Many people who possess the share, who would want immediate money or profit would readily sell the stocks to the people asking at higher price at higher rates. These people would be actually waiting for the stock price rise.

Most of the countries have their own stock exchanges, and their set of rules to be a part of it, and utilize its services. Stocks, options, and bonds can be bought or sold for the listed companies trading in the particular market in the stock exchange. These stock exchanges are normally volatile, the stock exchange of the United States being most volatile of all. The transaction of lot of money takes place in the stock exchange during the business hours. The stock exchange works only in the week days with the traders and brokers performing the transactions.

One of the junior stock exchanges of Canada, Vancouver Stock Exchange or VSE merged with Alberta Stock Exchange or ASE to form Canadian Venture Exchange, which is often referred to as CDNX. Later, with the Toronto Stock Exchange group acquiring the CDNX, it became Toronto Stock Exchange Venture Exchange establishing its corporate headquarters at Toronto, Ontario. Apart from Vancouver, and Alberta, Montreal and Toronto Stock exchanges were also a part of the agreement. As per the specialization areas that the stock market deals with, these exchanges agreed to restructure the capital markets of Canada. The junior companies were the mainly focused by CDNX. The junior companies were the ones with very low assets, market capitals and not with big business; ones that normally, cannot find their place in the list of the Toronto Stock Exchange (TSX). With the corporate headquarters in Calgary, Alberta, and the Operations headquarters at Vancouver, British Columbia, and additional offices in Winnipeg, Toronto and Montreal, the Vancouver Stock Exchange initially included the small companies that were mainly exploring the resources; however, with the passage of time, even new high technology ventures were gradually added. In the 80s, the Vancouver Stock Exchange listed companies were manipulated by unscrupulous people and brokers which led to the bad reputation of the Stock Exchange. This led to the implementation of new regulatory controls and surveillance system of the Vancouver Stock Exchange at the newly formed CDNX.

Vancouver Stock Exchange, during 1983 had problem in rounding off the figures in the index, by miscalculation. The index department had to be informed that the last digit should be rounded off and not truncated as their practice was, after the issue mentioned arose. Many people had doubts initially about its usefulness, and this incident had hit the reputation and ranking very badly. Moreover, VSE counts all the stocks equally, that is, VSE does not show any difference between the big companies and the smaller unlike other indexes. With lot of other drawbacks, this exchange has lot to learn from other indexes, and improvise the processes so that there would not be any problem to the companies listed, to the people buying and selling shares, and for it.