Shares began trading on the Internet for several years; where it does not exceed the number of investors, then a few hundred, then so is the development of more than 5 million investors now, and this number represents about 20% of the global equity market share, but the expectations of stock market experts to suggest that the number of investors over the Internet in this area will become 20 million by the end of 2005. On the Arab level is the most popular Kuwaiti shares trade on the Internet, especially that Kuwait is one of the major financial markets of the Middle East, as companies that provide some capabilities that will enable the Arab and Kuwaiti investors to trade in the Kuwaiti stock market and American or global, in particular, . There are millions of dollars of Arab businessmen invest in stock trading via the Internet, especially in the U.S. stock exchanges. The steady rise of the trade is the result of expansion in the use of the Internet, and also because the individual is able to conduct its own financial investments across the web, from home or office; where investors follow the prices of shares on the preferred site, and read the latest news as soon as they arrive, and to obtain the analysis to the best financial experts. It may also make the investor to buy or sell orders and monitor their implementation, but can be requested by e-mail to inform him about certain things and events that affect them in particular, may also be invested in the stock used on the Internet to a broker acting for him in the process of buying and selling shares on the bourse. Any user of the Internet if it thought that the money invested in this trade that he knows the rules, and the risks involved in the process of buying and selling on the Internet, in addition to some processes, such as opening an account on the Internet and the method of trading, as well as how to read stock tables? It is what we are trying to answer in the next lines .. Investment rules and risks. Way to open the account and trading. How to read the stock tables? Sites for trading, indicators and references. Investment rules and risks Increased volume of shares trading service via the Internet increased markedly both in terms of operations or the number of customers or quantities of shares due to handle the growing demand on the Internet, rather than dealing with a foreign brokerage firms. They may also resort to some of these companies entrusted by the broker on his behalf in the process of buying and selling shares of the Internet, and the advantage of dealing with the companies they provide a service to the client on the best analysis of shareholders and the right time to buy or sell, so there is some general guidance when considering investing in the stock market through Internet: 1 - The experiences of investors to deal in this area would be more efficient on sites that use the English language; because most studies and reports available in English, and that does not require the specialized rolling stock traded over the Internet because the process of deliberation and will be able to transfer things artistic, including working through period of time is simple. 2 - It's the investor to be aware of how to read the economic reports are true, and take the appropriate decision of whether to buy or sell in a timely manner, and this requires time to be a master of investor decision-making better. 3 - must not be tolerated the basic rules of investment under the guidance of the sites through which investment in shares, and not taking into account the ease and speed with which they are traded via the Internet, so that no losses. 4 - follow the instructions to the supervisory committee of the U.S. Treasury, which provides some general guidance for Mtdaulin via the Internet, particularly when investing in U.S. shares. 5 - Investing in the stock market no matter how easy it must contain a proportion of the risk; therefore investors should not forget the three golden rules of Astosmarooolha: to know what to buy or sell? Second: to know on what basis is to buy or sell stock and, finally, to know the level of risk and specify. The benefits of that investment, you Voprzha: 1 - the view of investors over the Internet, they provide a lot of money used to pay for mediators in the form of commission. 2 - the lack of costs to open an account; where the investor pays between $ 100 to $ 500, while the amount paid in exchange for opening an investment account with trade companies, the shares via the Internet. 3 - the time required to open an account through traditional methods usually takes weeks to become available to you through the trading of shares in your account when the investment is available via the Internet in less than a minute. 4 - can be made of speculation in the stock from anywhere in the office of the house and even out of the car when you have a service provide access to the Internet. The risks involved in investing in the stock on the Internet Voprzha as follows: 1 - should investors via the Internet to ensure that it is always as it is easy to Erbhawwa by clicking on the button, it is similarly expected loss. 2 - The studies over the past years, complaints to the supervisory committee of the U.S. Treasury increased by 330% in just one year, and most topics related to online trading. 3 - damage from the PC or from competing on the Internet due to the presence of many applications on the site, both buying and selling; which gives less chance for the completion of the transaction, and then the investor can not implement them; which may result in some losses, in addition to the possibility could not be access to the Internet and lack of access to confirm the completion of the purchase or sale in a timely manner; it is not always expected to be the process or report in the same second, it may be delays in the computer; investigation and must therefore find other ways to complete the confirmation process if there are problems over the Internet . 4 - Surprisingly, the stock quickly and the sudden activity of the market, does not mean that the price on the trading screen location that is the same as the purchase price; because the market is changing rapidly is very high, and we must take the necessary reserves in order not to pay the investor more than it had intended to or more than his content . Can not be avoided speculation (buying and selling operations) using the capital in full; rather than by a 10%; so that the rest of the capital as an insurance market trends reverse, is to enter the full capital of gambling. The point is to be done to stop dealing and then end the process of speculation in the case of the adverse trends of the market, whether for profit, which is called the "reduction or loss to determine," and called the process a, is determined by the investor to know the risks taken in the trading market is moving quickly, and put a plan in front of him of all the prospects for the control Bmkhatrtha. 5 - Some equity investors look to the margin, do not know the risks involved in the market to find the tense momentum investor who bought shares of initial margin of the same, calling for additional money to provide the margin of maintenance if the share price fell after that, and if not paid the required funds by the time the commission has the right the sale of securities and the investor bears the loss. 6 - Not the way some of the tradition of professional traders and risk; because he preferred to look at the stock market for investment and not for circulation only; Kaltdol day-to-day operations include high-risk, and so the investor must be able to bear the loss, and should preferably be long-term investment and not for a few minutes or hours . Way to open the account and trading To start the process of trade shares via the Internet must first open an account with one of the sites that provide the service. It is intended here to go to the site and application form to open an account. And send a check for the amount of the deposit to be invested in your company to the title after opening the account, and receiving your password, and then you can start trading in the shares over the Internet. Most websites that provide the service of stock trading requests the payment to open an account, which ranges from 1000 to 2000 dollars. The account can be opened in seconds, but you will not be available for trading until it reaches the check or transfer to a financial company. There is an exception; where some of these sites allow you to trade until the arrival of the check on the minimum amount you are willing to invest. It is the characteristics of this service that one can calculate, for example, trading in the markets of Kuwait and the United States, and the deliberative process to be faster, more flexible with the settlement of transactions in complete secrecy, and the possibility to withdraw or deposit funds from the accounts shall be in addition to any time that the service are in both Arabic and English, is available to all, and backed by a group of qualified experts to assist during the trading hours and by telephone at any time. Trading service are also available online in Arabic, in addition to English language sites in Arabic and some banks, brokerage firms other. Before opening the account you have to take into account these points: 1 - the fact that the broker will be dealt with via the Internet in terms of credibility, transparency and integrity of the implementation of the orders, and it must be the broker of global brokerage houses, which are known to be of good reputation, in some cases, there are brokers and all their ghost is the web site What is the price they give is also illusory, and so is the customer of the process of fraud and found that the broker told him to reveal the electronic account at that time less the result of calculation of the loss suffered by the depletion of the account even after 3 days after opening at the latest, and send the balance sheet so they look logical process, and that the broker committed to the rules of work and the most serious loss of the customer to the broker so that he can convince some imaginary new victims to join him so that he can blackmail and the seizure of their money. 2 - make sure that the time differences between giving orders and implementation should be minimal so as not to entail the loss, in addition to orders to be implemented at the price stated on the screen, is the escape rate of implementation several times, does not bode well for the progress of work for this broker, and must Search for another broker to be more precise in the execution of orders. 3 - to know that interest rates will be paid by the customer or take them from the broker in the case of the survival of the Special Account by the open, if not closed the sale of the purchase process, and vice versa; In some cases, impose costs on interest rates if the customer has some operations are open to long-term , and interest rates are such a complex manner, resulting in some losses for the client. 4 - to guard against the entry of the mass market or a policy of the herd, it is good when entering the local stock market, but it is different for speculation on the Internet; as there are some States have in the process of correcting the internal conditions of the economy, and that the central banks buy and sell a wide At the same time, putting the market in a critical position not only knows the market makers who control the world market for shares and bonds, it is assisted by brokers and their agents who pay to follow this policy for the purposes of covert cooperation with the central banks of some of the gains to the broker. Account opening procedures The broker, which will deal with it is that you with the agenda of the steps to be able to open an account for investment via the Internet, but the summary of these steps: - Transfer funds from your national currency to a global currency. - The conclusion of a contract with the broker provides that your orders will be carried out according to the commission of certain charged according to the number of transactions. - In some cases, the contract provided for an agent and broker that the client and it would do what it deems appropriate from the sale and purchase of shares on behalf of the client. - The process of transfer of funds allocated for the client to open an account from the client account in a bank account to the broker in the bank broker. - Notification is sent by the broker to the customer informing him that the funds for opening the account had been opened by the account for the benefit of the customer to the broker. - After that, the execution of orders by the client with the broker to send a periodic statement of account the customer's value and the number of shares sold or purchased, and the value of its profits and asked whether he wished to convert the profits to any location desired by the client or would increase the value of self-worth his profits. - In the case if the client wishes to end his dealings with the broker and the final withdrawal of investment in shares online broker shall notify the customer account until the transfer and liquidation of the broker. The model on the issue of opening an account that one of the Kuwaiti brokerage firms to open an account with the deal requires the electronic filing of 500 Kuwaiti dinars, and the transactions shall be invested in his company wants to invest the amounts and the amounts could be recovered in whole or in part at any time. And on the fees charged by the company for this service, they amount to 2.5 dinars on each transaction in addition to 1.25 per thousand charges the Kuwaiti market, but for the U.S. market amounted to $ 18 per transaction, provided that no more than the quantity of 3500 shares, and more it pays a fee of half a U.S. cent per share. The execution of orders via the Internet Mechanisms are the work of the stock market via the Internet in the execution of orders for the circulation, where the stock market from the secondary markets, secondary and the word here means that the financial assets to be exchanged through the stock exchange of the shares had been issued earlier. Vtal me to know Alykevip the execution of orders of each market from the financial markets as the global classifications in this context. - Paging market Call Market, a market which is a compilation of the wishes of buyers and sellers on the Internet through a review of the wishes of the sale and purchase of paper and then to a certain online auction until the price of a certain balance is achieved where the same quantities required before then start with the exchange by sending requests for both sale or purchase via the Internet to the person responsible for this on the Stock Exchange to the implementation according to the demands of investors. - Continuing the market (Continuous Market), and orders for the buying and selling in this market could occur at any time, any investor wishing to sell his shares through the site posed by the brokerage company or even the left is the stock market and the implementation of pre-sale at a fixed rate rated satisfactory, and when the seller and agree with this price, a buyer makes a request for such securities at a stated price, with the condition that the market price may be equal with the price set by the seller and the buyer's chosen. In order for us to clear the process of trading on the Internet could be considered for this map: Map of the Internet stock trading in the Is there a so-called orders large and small orders within the trade shares online? First applied this system is the New York Stock Exchange, Paul Street, known as the small orders, which contains a certain firmness of the shares each package within the limits of 2000 shares, and are dealt with through the mail program called Super Designated Order Turnaround over the Internet, although this system In the past, which are dealt with through the internal communication network between the Stock Exchange and brokerage firms, and pays for the participation of the stock market, and in this system is now the client is sent directly to the main floor until the implementation. For large orders, or what is known as the blocks they belong to the investor and the very large deal in which the giant companies of the end; because the volume of which is one of billions of the process, orders are sometimes many blocks is the maker of the market and the main engine. There are also other types of orders: Sales and acquisitions involving more than just the development of orders, and there are different types of orders to meet the different types of requirements and subject to certain restrictions. - Market orders: immediate implementation of the purchase or sale the best prices available in the market. - Limit orders: the orders of the implementation of the minimum or maximum prices set by the customer. - Suspension orders: orders are not carried out only when market prices reach a certain level to be specified in the order. The matter: - Day: remains valid for the day it is received, and then automatically be canceled. - Valid until cancellation: If it has not been implemented on the day of issuance, transfer to the following day (within 90 days), until it reaches the market price to the level required to be or to abolish it. How to read the stock tables? Understanding the immediate follow-up to stock prices over the tapes that show the rotary prices and equity indices over the Internet is important before the start of a purchase of shares; as there are certain norms used in the inclusion of a price within the price of living or indirect, as well as tables of shares must be read before embarking on procurement via the Internet, through the terminology and symbols specific to that, for example, including: - Other (Last): the last traded share price that was it. - The rate of change (% Change): Percentage of the latest change in the share price. Net (Net): the value of the actual change in the price of the share. - Offer (Bid): The last price offer. - Demand (Ask): The last price of the application. - Size (Volume): the total number of shares traded during the day. - The annual dividend per share: (Earning Per Share) and are reflected in stock tables under a short cut Div Dividend. - Percentage of revenue: YLD Yield Percentage cut a mean annual rate of return of the shares. - Price per share to profitability: P / E Ratio which is an abbreviation for the word (price - Earnings) and reflect the demand of buyers to buy certain shares. - The opening (Open): The share price at the opening of the market. - Closure (Close): The share price at the close of the market. - Top (High): the highest trading price of the day. - Minimum (Low): the lowest trading price of the day. - Total shares traded every day: Daily Stock Exchange. - PF shares outstanding Preferred stock, a shortened - The shares are guaranteed by the company and the WT is written after the name of the arrow, which indicates that the company in whose name it shares such as Vodafone, for example to ensure the purchase of the stock at a fixed rate determined by the advance during the given period. - VJ and contributed poorly written after the name of the arrow indicates that the company or on the verge of bankruptcy, the company liquidated. Key indicators So you can follow up the performance of your shares, even if your holdings, however, were not included in the composition of the index, but can be through such indicators to identify the general trend that can take your own stock, although the classification of a particular industry as it contributed to or technology or Even oil companies, including global indicators: - Dow Jones (Dow Jones Industrial Average - DJIA): This indicator consists, for example, 30 major companies and is calculated using the average prices of the most important of these companies and, therefore, when the Dow Jones index falls 40 points, for example, the level, this means that the average share prices of 30 the company had fallen 40 points. This index is a guide on the general situation of the market and can be useful when used measure for assessing the performance of your stock. - Comprehensive index of the New York Stock Exchange (NYSE Composite) to measure the performance of all the shares included in the New York Stock Exchange (NYSE), 4 indicators for sub-groups: industry, transportation, services and financing. These indicators are a key measure of the change in value after the total market capitalization, excluding the effects of the new listings and listings canceled, the value of each share is measured by multiplying the share price on the number of shares. - Standard & Poor's index of 500 (Standard and Poor's - S & P, which consists of the shares of 500 companies listed on major U.S. markets, and this indicator is measured by the overall average balanced manner, and this index reflects the market value of the total 500 companies, so the value is calculated by multiplying the price of each company the number of shares of existing stock. - Comprehensive Nasdaq (NASDAQ Composite Index) includes many of the companies in the technology sector and a measure of the value of more than 5000 companies Access to stock data There is no doubt that you need to evaluate some of the shares that would like to buy via the Internet by collecting as much information as possible on those shares, and this is essential if the investment did step over the Internet, and divided the data for the circulation of the shares via the Internet into two parts. : www.schwab.com www.waterhouse.com www.datek.com www.ameritrade.com www.dljdirect.com www.bankrate.com www.investingcomplaints.com www.online-trading.info www.virt-x.com www.nasdaq.com www.standardandpoors.com www.nyse.com www.dowjones.com : Sauger , Gary C., & John J. Mecconnell “STOCK EXCHANGE AND SECURITY MARKET . Journal of
financial and Quantitative Analysis. Indexes
Source:The basics of investing in the Stock Exchange - Author: Mohammad Saleh Hanawi, Publisher: House of Alexandria University 1997. The stock from an Islamic perspective analytical study of cash, Authors: Shaaban Mohamed Islam Albrooari, Publisher: Dar Al-Fikr Damascus 2002
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