All about Stock Market
Stock Market is a platform that are provided for the buyer and the seller to trade the commodities ,stocks, bonds, options etc .Trading in a stock market is done through by means of the computers. This is done on certain hours from Monday to Friday. Stock is the share of company in which we had an assurance that it will receive the future profit of this company. A share is literally meant like the ownership of the company. If we earn the share of the company then the shareholder will be having the ownership of a small part of the assets along with the earnings of the company. There are many companies who had listed in the stock market. These companies provide their shares to the public. These companies pay fees to the stock exchanges assuring that all the important information will be given to stock market. For the payment of this fee these companies list their name in the board of the stock markets where the people visit and they have the opportunity to get the money. If the company get listed then they should provide specific number of shares and also need to provide information regarding their financial condition and all about the management team. If the stock of a company appears on the board of the stock market then this is called as Initial Public Offer or IPO. Next are those people who are called as Brokers. Since there are many companies which are listed in the market it is not possible to trade with all of these individuals. In such situations brokers are appointed who serve as a middle person between the exchange and the individual person. Any person who had ever been in the stock market knows that the prices get fluctuated. For some people this appears to be very stressful. It is a known fact that the success story for stocks to buy of a stock market can be seen only if a person is patient and willing to study of the fluctuations in the past.
Benefits of a Stock Market
- Stock Market helps in building a business. This can be helpful for the companies to earn money from many people. This gives several options for the business.
- This enables to spread the risk. The risk of a business is distributed among many people. Since each people will be having a small part in the stock of company, they might not very well affect with the failure of the business.
How the process are determined in a Stock Market
Before the stocks are bought and sold the buyer and seller should agree on the terms.
- People begin to compete for the stocks if they feel that the price of the stock will increase in the future and they can gain profit out of this.
- People who sell the stocks compete for the buyers to sell the stocks at more prices. Check the stocks to buy.
- Many sellers and buyers will be available for the same company shares at the same time. This can end result for a auction