Merrill Lynch
Trading in the blink of an eye
Background
Think of money as a product or commodity – something that can be bought and sold.
Investment banks like Merrill Lynch buy and sell money on the open market. This money is usually in the form of bonds and shares.
When bonds and shares are bought and sold on the international money markets this is called ´trading.´
Trading is a fast and highly competitive business where a quick reaction to new prices is critical. Being the first trader to respond to new prices can earn the bank very large sums of money for its investors.
Computer technology has changed the way trading is carried out. These days, trading is electronic, highly visible to global traders and faster than ever.
The Stock Market
A stock market allows people to trade in stocks and shares, and other investments such as government bonds. In the UK, the main stock market is the London Stock Exchange. Other major exchanges are in New York, Tokyo, Frankfurt, Paris and Shanghai.
Even if someone doesn’t personally invest in shares, they might own some indirectly through their pension scheme.