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2006-12-08 17:59:00 · 9 answers · asked by anvesh r 1 in Business & Finance Investing

9 answers

Please view this web-page :
http://en.wikipedia.org/wiki/Stock_market
You'll get to know the exact meaning.

2006-12-08 18:02:47 · answer #1 · answered by Zarama 5 · 6 0

The Stock market is just like any grocery markets in your neighborhood in a lot of ways. There is a buyer and a seller for anything sold. In the grocery store, if you like the price of something, you buy it. If you do not like the price, you go on to find the next item. In the stock market, there is a seller and buyer for any shares of a stock traded on the stock market exchanges. The only difference between a grocery store and a stock market is their goods sold. In the stock market, the goods are company stocks. In the grocery store, they sell milk, vegitable, meat, or fish, etc.

2006-12-09 02:09:21 · answer #2 · answered by calmarnet 1 · 0 0

The following explains what is a stock and how it is traded in a stock market;
1. In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market.
2. By owning a share you can earn a portion and selling shares you get capital gain. So, your return is the dividend plus the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price.
3. A company's stock price reflects what investors think about the stock, not necessarily what the company is "worth." For example, companies that are growing quickly often trade at a higher price than the company might currently be "worth." Stock prices are also affected by all forms of company and market news. Publicly traded companies are required to report quarterly on their financial status and earnings. Market forces and general investor opinions can also affect share price.

4. Quick Facts on Stocks and Shares

a) Owning a stock or a share means you are a partial owner of the company, and you get voting rights in certain company issues
b) Over the long run, stocks have historically averaged about 10% annual returns However, stocks offer no guarantee of any returns and can lose value, even in the long run Investments in stocks can generate returns through dividends, even if the price
c) How does one trade in shares ?
Every transaction in the stock exchange is carried out through licensed members called brokers. To trade in shares, you have to approach a broker However, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders.

d) The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it .
Nowadays, getting guidance and sellling and purchasing of shares can be done online. There are service providers.
VR

2006-12-09 02:16:09 · answer #3 · answered by sarayu 7 · 0 0

Wealth of a nation cannot get conglomorated in one place it has to be distributed around the nation. Stock Markets helps to achieve this need. Developed nations have speculative income taken care of in their wage structure so that those who are employed can invest this in the stock market. In other countries people need invest only if they have speculative income from somewhere. It is safer that way.
Then this is a way by means of which companies can raise cheap capital without any risk attached.

2006-12-09 13:07:43 · answer #4 · answered by Mathew C 5 · 0 0

Many companies are organized as corporations, which issue shares of their ownership to people who have contributed money (or other assets) to get it started. Sometimes these shares are sold to the public. People who want to sell such shares, and people who want to buy them, are potential customers for a market, and brokers bring such people together (on paper, of course) to permit sales to be made. A stock exchange is a building which contains such a market.

2006-12-09 02:03:52 · answer #5 · answered by Anonymous · 0 0

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2006-12-10 01:56:24 · answer #6 · answered by Anonymous · 0 0

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