We all read or hear about the stock markets, and millions of Canadians own shares, either directly or through mutual funds . The first formal stock exchange was established in Antwerp, Belgium in 1531. The intent then, as now, was to bring businesses in need of money to fund new or expanded activities together with people who had the money to invest. Anyone can buy or sell shares on an exchange, but all transactions must be executed through a licensed broker. Once you've opened an account with a broker, you can begin buying and selling.
Stock markets appear unruly at times, but they are tightly regulated.
All exchanges impose trading and disclosure requirements. Canadian and Foreign Stock Exchanges Canada has four exchanges, located in Vancouver, Winnipeg, Toronto and Montreal. The Montreal Stock Exchange handles trading in derivatives, futures and options. Indices are used to measure and compare general market performance, but some are more representative of the overall market than others. Because those top stocks are calculated at the close of trading each day, declining stocks get bumped out for rising stocks.