One of the trending words is stock market or stock marketing. Actually, what is stock marketing?
Technically definition of a stock market is, It is the place where shares of public listed companies are traded. In simply stock market is one of the markets people can buy or sell shares of different companies.
Compared to other stock market is different one. We can easily buy the shares from share market. But returns, this is the biggest question. Some times the market go down. sometimes goes up. According to google survey the value of the stock market is $89.5 trillion.
Understanding The Stock Market
In the olden days, the word stock market is not that popular. But now, it is a trending evergreen topic. A huge number of buyers, and sellers are there. So the market is very big. the stock market allows its securities to interact, meet, and trade electronically. In the olden days, the stock market issued paper-based physical shares. But now, in the modern world stocks are operated electronically. So people can interact with other stocks simply.
Participants – Stock Market
Mainly there are four participants are played in this market.
1. Public Listed Companies
Public listed companies are the one major part of the stock market. There are thousands of companies are working around the world. but in the case of the stock market, all the companies are not publically listed. Public listed companies enable a company to raise capital for increasing its volume and strengthening its structure. So companies sell their some share through the stock market.
investors are played another major part in this market. There are various types of investors are in the market. like retail investors, institutional investors, mutual funds, foreign investors, etc. Actually, investors put their money into an entity. They buy shares of different companies at a low price and sell that shares after increasing their value of that shares. the main goal of the investors is to minimize the risk and maximize return within some time.
The authorized participants of the stock market are stock brokers. The brokers facilitate the interaction between the investors and companies or between the investors. All the interactions are running online.
4. Clearing House
Clearinghouse is part of the stock market. It acts as an intermediary between buyers and sellers of financial instruments.
How To Identify Good Companies | How To Select Good Companies?
How do investors select companies for trading? What are the factors connected to selecting a good company?
- Fundamental Analysis of a company
- Strength of a company
- Future growth
- Revenue generation
- Expansion growth
- Management Team
- Market sentiments
- Reviews about that particular company
- Experience in a particular industry.
Best Stocks with Low Price
What Is IPO-Initial Public Offering
IPO is a very important term in the field of stock marketing. IPO or Initial Public Offering means, It is a offer of shares made by a company to public for the first time. After the IPO The shares bought by the public can be traded on the share market. In the terms of economy, when a large IPO’s happens It is a sign of healthy economy. Through the IPO large amount of money will be flow to the company. Then Company will take a strong relationship between the shareholders.