• WHAT IS A STOCK MARKET?

    Making money is what every individual is aiming at. Stock Market helps them do it. A market is where things are bought at a low rate and sold at higher price to the customer. A stock market is where shares of company are bought at low cost and sold at higher price and thus money is gained. A stock, which is also referred as 'stock certificate' is nothing but a legal document from the company. An investor who buys the stock of the company becomes a co-owner of the company and is given certain rights on the company. A part of company's profit is shared with those possessing stock of the company. The amount of profit that is shared to investor is based on the percentage of share owned by the investor. The cost of stock varies based on the profit or loss of the company. It also varies based on demand and supply of the individual stock. Some times it reacts irrationally based on economic and financial events in the country.

    http://www.stockinvesting-montyloree.com

    When the demand is higher, price increases and reduces when the demand for the stock reduces. The stock of a concern is divided as shares. And those who posses the shares of the company are called as share holders. These Share holders share certain privileges of the company. There are basically two kinds of stock - Common stock and Preferred stock. Common stock offers the direct right to voting to certain decision matters whereas the Preferred stock allows only sharing the profit in terms of dividend.
    Owner of the company also gets more investment through these investors. It is even possible to open their company without having sufficient money. By this public trading people and there money is involved for the trade. The person with more than 50% is considered to be the owner of the company. Hence the source of money is increased and therefore their profit. And also suggestions from the people for the development of the company are considered. This helps in the growth of the concern.

    A person can not directly buy the shares of the company. It is done only with the help of Share brokers. Share brokers acts as bridge between the company and the investors. The seller and buyer mutually decide the price of the trade. Stock Exchange is the organization which provides trading facilities for the stock exchangers. The Stock exchange ensures securities between the buyers and sellers. All the shares of companies and their price are listed in the Exchange. Alberta stock exchanges, Toronto stock Exchange, Montreal Exchange, NASDAQ Canada are some of the stock exchanges in Canada. Toronto Stock exchange is one of the largest in Canada.

    Stock market dip is a sharp dip in the share prices. It causes losses of billions of dollars and confidence of people. The raise in the stock market is directly proportional to the economic growth of a country. An economy where the stocks and their rates escalate is said to be as booming economy. This also helps in gauging the strength and development of the company. The rise in price of shares tells the rise in the investments and thus the rise in the economy.



Add Your Comments:
Fields with * are required
Your Comment Below:
 
Name*
 
Email*
 
Website
 
Code*
 
Enter Above Code
 
Note: Comments are moderated - Spam will be deleted
 

Comments