To increase the money every people wants to know What is the share market and stock market-how it works
All the time person do not familiar about the working principle and share uses.
In simply we can say that share market and stock exchange are the value addition process in to the money.
What is the share market
share market is the place where The word ‘share’ refers to investment strategies such as mutual funds and limited partnerships with each other.
By buying of the share, you’re making an investment within the company. Because the company grows, the value of your share too can increase.
Main function of share market–
- A platform where to buy and sell the shares.
- All the Shares are units of total value of a company. For instance, if you want to invest in a company, you will receive a certain number of shares, depending on the money you are trying to invest.
- At the general, meaning shares refer to stock ownership of the particular company.
- The share market is a market where a company offers its shares to raise funds and continue the growth of its business. It is a place where an investor can buy part ownership in any company.
- By the using of investment a share holder always enjoy as company share boosting.
What is the stock market
stock market means when
the stock exchange, is a place where stocks, equities, and other securities and bonds are actively traded. Once new securities have been sold in the primary market, they are traded in the secondary market—where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon. The secondary market or the stock exchanges are regulated by the regulatory authority.
Main function of stocks market –
1.The stock markets brings the stock seller and buyer together.
2. stock are the ownership of certificate of any company.
3. A stock cannot be bought or sold if it is not listed with a stock exchange.
4. In the stock market, stockbrokers trade companies’ stocks, securities, and bonds.
5.The Securities and Exchange Board of India (SEBI) regulates the stock exchanges in India
6. Hence, fair pricing and transparency of transactions are assured.
7.The market tracks demand and supply of stocks and sets its price accordingly.
stock market-how it work?
The concept behind how the stock market works is pretty simple. The stock market lets buyers and sellers negotiate prices and make trades.
The stock market works through a network of exchanges — you may have heard of the New York Stock Exchange or the Nasdaq. Companies list shares of their stock on an exchange through a process called an initial public offering, or IPO. Investors purchase those shares, which allows the company to raise money to grow its business. Investors can then buy and sell these stocks among themselves, and the exchange tracks the supply and demand of each listed stock.
That supply and demand help determine the price for each security, or the levels at which stock market participants — investors and traders — are willing to buy or sell.
Buyers offer a bid, or the highest amount they are willing to pay, which is usually lower than the amount sellers ask for in exchange. This difference is called the bid-ask spread. For a trade to occur, a buyer needs to increase his price or a seller needs to decrease hers.
This all may sound complicated, but computer algorithms generally do most of price-setting calculations. When buying stock, you’ll see the bid, ask, and bid-ask spread on your broker’s website, but in many cases, the difference will be pennies, and won’t be of much concern for beginner and long-term investors.
This is all about share market and stock market-how it works in money valuation.