What is the Korean Stock Exchange?
The Korean Stock Exchange is the leading place for trading in shares and bonds in South Korea. Its interesting history begins with the unification of several smaller stock exchanges in the 1950s and develops into the most modern shopping center that happened. During its time, the stock exchange had four principles as the main light to ensure a fair market system: a focus on profitable and stable society; encouragement of complete publication of companies; determination of market transparency; and a strong effort in the prevention of fraud. In 1953, under the leadership of the Korean Act on Stocks and Futures Burzovní Act on the exchange of Korean shares and futures exchange laws on the exchange of Korean and futures. The result was the only place for trading in national and international interests. From these modest beginnings, the replacement has grown over 1,500 companies worth through a trillion of US dollars.
To reach this financial level,The Korean Stock Exchange has changed to keep up with technology. In 1975, the stock market began to use "Open Coukry" trading, which is basically a huge verbal auction. This method worked well, but it was often chaotic, so in 1988 the exchange introduced a computer trading system that operated in conjunction with this system. When the technology was advanced enough, the replacement got rid of as a fully automated system in 1997.
Another progress that helped the Korean Stock Exchange growing to a strong modern market was to lift the ceiling of investment for foreign investors. This happened in 1992 and allowed non -Korean investors to buy as many shares in Korean companies as they demanded. This bolsted the economy and created a boom in the purchase of bonds.
In the course of rapid growth, the Korean Stock Exchange has reported four main principles to maintain justice and sensitivity to the open market. In order to help prevent fraud, the stock exchange examines any proposal for unfair cybernetican trading. It also seeks to maintain a transparent market by supervising the market to monitor business and prices of shares. Emphasis on stable and profitable companies with good potential for growth also helps to remain strong. It also supports the publication of companies so that investors can make informed decisions.