Tuesday, March 10, 2009

the london stock exchange

it is correct title is the international stock exchange and it underwent considerable changes in the mid 1980 s , culminating in "big bang " on 27 October 1986 . prior to that , it is member firms were of two kinds :
- brokers ,with their incomes form commissions charged to investors , and acting purely as agents .
- jobbers , who owned the stock and shares , making an income from profits arising from the margins between their buying and selling prices to the brokers .

big bang comprised a series of changes , agreed with the government ,to make the exchange more competitive with the NEW YORK and TOKYO exchanges ,which are it is major competitors. until big bang ,the rule was single capacity - a firm could be either a broker or jobber but not both .also ,until big bang commissions charged were not negotiable and this lack of competition caused international business to move to new york and Tokyo .

big bang also made the following changes :
- minimum commissions were abolished .
- firms could be brokers and jobbers ,known as market makers , although many smaller ones preferred to
the main market of the London stock exchange is divided in to two :
- gilt-edged (gilts ) and other fixed-interest stocks ؛
- Equities

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