The Stock Exchange is the first Financial Market that almost 80% of adults in the world identify as “the” Financial Market, the only one they know.
But whether in the Eurozone or elsewhere in the major currency areas, “the stock market” is the smallest market.
Indeed, this “listed equity market” does not list all forms of capitalization since there is a whole panoply of legal forms, open and closed, which make it possible to “dominate” the economic world and the financial world.
On the other hand, behind this Stock Market (listed shares) of the EuroZone, there are actually two markets: “the Primary Market” and “the Secondary Market”.
As you will see, the Secondary Market can vary from single to double, or vice versa. “The Stock Exchange” looks like a basket of crabs: from the first tremors, the small crabs are ejected. In the final, there are only a thousand large shareholders left in the world.
To be able to launch new issues on the Primary Market, it is mandatory to call on the banks that designate a “leader”.
This leader is a very discreet investment banker (or the specialized structure of a TOP-10 bank).
Its role is to set pre-sale quotas for a new share for each participating bank, and to determine in advance the ranges of introductory prices, high or low according to market developments, high or low depending on the price of existing shares.
Of course, the leader foresees the ultra-comfortable commissions that the partner banks will share: generally between 5% and 8% of “collections”.
As you will see, this primary market is very clearly counterproductive (insufficient and too expensive): it is against this system of “greedy investment bankers” and not very enthusiasticthat the Americans have created new over-the-counter markets, the most spectacular of which is the market of “crypto-assets” which are in no way “currencies” (not even Bitcoin).
We will gradually come back to all these concepts and novelties: a gigantic work of concepts and costing awaits us.