When I was young, I always used to ask myself that why some people remain so mad about Stock Market and what actually is a Stock Market? Why we suddenly see people making billions of dollars in months or losing billions of dollars in days? Therefore, through this article I am trying to make it simple for others to understand what basically is Stock Market and how it functions. The most basic work of any stock market is to facilitate trading in various company stocks and derivatives.
Stock Market provides an easy option in front of companies to borrow money from people and financial institutions by offering company stocks in return to them. Any Stock is listed on Stock Market at particular face value plus premium value which is determined by various agencies affiliated with Stock Market. For example if a stock has face value of Rs 10 and premium value of Rs 100 then this stock will be listed at Rs 110 on stock market and will be available to people at this price.
Face value is termed as actual value of stock (which never changes) while premium value is risk or time or extrinsic value which is paid to seller for reducing the risks of selling stocks to buyers (changes with demand). After listing on Stock Market, any stock becomes available for trading on open stock market. Now stock becomes totally dependable on market reactions and demands. Stock moves up in the Stock chart and value if there are more buyers for it at higher value, however, stock moves down if there are more sellers for stock at lower value. Investors reward good performing company stocks by buying them abd thus increasing their value, while investors punish bad performing company stocks by selling them and thus decreasing their value.
However, there are many exceptions in Stock Markets where many Stocks increase on speculation and despite bad performance by companies. Therefore, Stock Markets become unpredictable where people can simultaneously make huge amount and also loses it in minutes. However, with proper planning and long term goals people can make good returns from Stock investments.
Also read-1)Live Indian Stock Market Toolbar
2) Live NSE and BSE (Live Indian Stock Market)
3) Stock Market below 13000 points, Sign of Caution
4)India stock market below 14000 Points, What to do now?
5)Why India stock market is down?
6)What caused Black Monday for Indian stock Market?
7)Indian stock market lost 20 Lakh crore in seven days
8)Indian stock market and terror funding
9)Tips for avoiding Risks in Stock Market investment
10)India stock market crossed 20,000 mark for first time
Below, I am going to share few free websites which are offering free social networking solutions to people. With the help of these websites,...
Today, it was double celebration for BJP as first it was the birthday of formal Prime Minister of India and senior BJP leader Atal Bihari Va...
Live results Jharkhand Assembly Election 2009 Who will Jharkhand Assembly Election 2009? (opinion poll) Slowly, 2009 Loksabha (Parliame...
From next year, it will become optional for CBSC tenth class students to give 10th board exams or not because board exam system will be repl...
Aishwarya Rai always attracts the attention of people wherever she goes in this world. All this become true when Aishwarya was seen in 61st ...
Below, people can enjoy detailed interview of Ayesha Takia which she gave on Zoom TV. Ayesha Takia is one of the most favourite and hot star...
Recently in last few days, we all have seen lot of controversies related to controversial sex scandal in Kashmir which paralysed state of Ja...
Airsoft guns are used in a game combats in which people try to do the replica of real fight. This game became popular in Japan in 1980, when...
1)We use third-party advertising companies to serve ads when you visit our website. These companies may use information (not including your...
Ayurveda has gained a lot of support from the people of various society and cultures. The main reason behind all this is ability of the Ayur...