Understanding The Stock Market

Posted by Traders Gurukul on June 14th, 2021

Investing money in financial schemes or shares with an expectation to receive a profit is called trading. To successfully know how to invest in the stock market, one has to understand the basics of how the market works. This includes having a good knowledge of the rules and the risks involved in the stock market. Understanding the stock market and the way it works is extremely important if you want to be successful in the market. First of all it is important to note that investing in stock markets is not a quick money scheme and that it takes a lot of skills and expertise to be able to succeed in this field. Stock market webinars conducted by Cautilya Capital I3T3 program helps the traders to gain knowledge about the stock markets. It helps traders to know and understand the factors that affect the stock value before one could invest in the stock market.

How Does The Stock Market Work? 

Before one can understand what it means to invest in the market, they have to know and understand how the stock market works.

The primary stock market provides a great opportunity to the issuers of stocks, to raise resources to meet their investment requirements and discharge certain obligations and liabilities. A company usually lists its shares in the primary market through an Initial Public Offering (IPO). Through an Initial Public Offering, a company sells its shares for the first time to the public. An IPO is open for a particular period of time. Within this window the traders can easily bid the shares and also buy them at the issue price which is announced by the company. Once the subscription period comes to an end, the shares are allotted to the bidders and it is offered to the general public.

The last step involves the listing of the company on the stock market, which means that the stocks issued during the IPO can now freely be bought and sold by the public. The secondary stock market is a place where the shares of a company are traded after being initially offered to the public in the primary market. It is a marketplace where buyers and sellers meet directly.  

Once listed on the stock exchanges, the stocks issued by companies can be traded in the secondary market to either make profits or to cut losses.

One can earn from the stocks that are bought in two ways; first through the dividends which are paid by the company to its shareholders. The second way is by earning through the appreciation of the company.

It is a well known fact that stock market business is risky. It is estimated that only a small percentage of the people become highly successful in the stock market business, while the remaining people lose most of their investment. One has to invest time to understand the stock market, and acquire the relevant skills. These skills are acquired by attending stock market webinars which are provided by Cautilya Capital I3T3 program.

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Traders Gurukul
Joined: July 9th, 2020
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