The Stock Market is an organized market for the trading of stocks and bonds. In Europe a stock exchange is often called a bourse. Stock exchanges exist in all-important financial centers of the world. Members of an exchange buy and sell for themselves or for others, charging commissions. A stock may be traded only if it is listed on an exchange after having met certain requirements. The New York Stock Exchange (founded 1790) is the largest in the U.S., handling more than 70% (in market value) of all transactions. The American Stock Exchange (Amex), also in New York City, and regional exchanges account for the remainder. Unlisted shares, often of smaller companies, are traded in the growing over-the-counter market. The NASDAQ (National Association of Securities Dealers Automated Quotations) system, an over-the-counter U.S. organization, accounts for the fifth largest stock trade in the world. Increasing computerization of stock trading may eventually render trading on a stock exchange floor obsolete. In the stock market allot of illegal and unethical things go on. One of the most known crimes is insider trading. Insider trading occurs when someone has information that is not available to the public. The information obtained through insider trading is used to profit from trading in a company’s publicly traded securities. In the United States, insider trading has been illegal since 1934. This practice is protected by the Securities and Exchange Commission (SEC), the United States government agency created by the Securities Exchange Act (1934). It requires companies to submit full public-disclosure statements before issuing securities on the open market. The SEC regards the practice of insider trading as unfair to investors. It also regulates stock exchanges, brokers, and dealers in securities, and sets margin requirements for bank credit in security trading. The laws restricting insider trading define “insid...
