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1. Differences between Stock Exchange and Stock Market
The Stock Exchange are self-regulated private organizations constituted like civil associations or joint-stock companies.
The Stock Market are organizations constituted like joint-stock companies with registered share or escriturales.
The Stock Exchange have by function:
 | To authorize, to suspend and to cancel the quotation of values in the form that arrange their regulations. |
| To establish the requirements to fulfill to quote values and while the authorization subsists. |
| To control the fulfillment of the legal and prescribed dispositions on the part of the quote societies. |
| To dictate the norms necessary to assure the veracity the documentation to present/display by the organizations authorized to quote its values, as well as to assure the veracity in the registry the quotations and to publish same and the current prices. |
So that there is negotiation of values the Stock Exchange must have adhered Stock Markets. The Markets regulate, guarantee and sell out the operations. The Stock Exchange of the country with adhered Stock Markets are in Buenos Aires, Rosario, Santa Fe, Cordoba and Mendoza. Stock Exchange of Bahia Blanca operates with the Stock Markets of Buenos Aires through its society of denominated stock market Bahia Blanca Society of Stock Exchange.
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2. Differences between Stocks and Bonds
The Stocks are representative private titles of a fraction of the share capital of the Joint-stock companies. However, the bonds are titles of national debt emitted by the State (National, Provincial or Municipal).
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3. Income and amortization
The income is the interest that generates a debt title. .
The amortization of a title is the return of the capital.
The clauses of emission of the values of fixed income can establish different modalities from interest payment and return of capital. The amortization can take place completely to the expiration or according to a cronogram of partial quotas.
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4. Options
They are operations in which a person (Option writer) grants to another one
(option holder) the right to buy (purchase option - call -) or to sell (sale option - put -) a certain amount of values, in exchange for a price (premium). That right can be exerted at any time until a certain date (date of exercise), happened which the right is extinguished. If it is exerted, the transaction of the values is perfected object
of the option
The holder or buyer of the right is the one that the premium pays to obtain the right to buy or to sell the underlying assets. In case of not exerting the right, its loss is annotated to the premium who opportunely paid.
The Option writer or salesman of the option is the one that the premium perceives to grant the right to buy or to sell the underlying assets.
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5. INDOL
The INDOL The INDOL is an index of type of Peso-Dollar change to future developed by Mercado de Valores de Buenos Aires S.A. (Merval) ) in order of offering to different public an effective instrument him and widely spread in the world that allows them to assure the value the dollar in the future and neutralizing the exchange risk. With the INDOL it is possible to be operated to future from u$s 1,000 and one is due to have 10% of the amount for guarantee. The underlying assets of the index are the type of change of reference calculated by the Central bank of the Argentine Republic (BCRA), Communicated "A" 3500. All the operations count on the guarantee of liquidation of the Merval.
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6. CEDEAR´s and ADR´s
The CEDEAR's sis certificate of deposit, representative of a class of stocks or other foreign values without authorization of public supply in our country. They can be acquired in the local market like an investment alternative. However, the ADR's are representative certificates of local stocks that quote outside the country.
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7. Technical and Fundamental Analysis
As much the technical analysis as the fundamental one is two tools that are complemented and that help to the investor at the time of deciding his actions.
The technical analysis is based on statistical data on the behavior of the stock (or bond) and of the market. Through graphs (example: Japanese candles, waves of Elliot), study the evolution and tendency that allows to infer the next behavior of the quotations.
One of the principles of this analysis maintains that, leaving to the small fluctuations of side, the quotations they behave following tendencies or movements that last relatively long and delimited well in the time and that continues, until take place changes able to unbalance the equation between supply and demand. Such changes can be detected according to the evolution of the same market.
However, the fundamental analysis is based on the study of the companies focusing in the economic, financial and patrimonial ratios, in the type of activity and everything what it can influence in his development (ej: political and economic situation of the country and outside of it). Some maintain that it is the only way to study an action rationally.
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