Share Market: What It Is and How It FunctionsPosted by Karan Sharma on December 6th, 2022 The four main foundations of financial security are earning, saving, investing, and protecting. Of the four, stock market investment can be a little frightening. There are several hard-to-understand terminology. The stock market will surely undergo ups and downs because it is prone to volatility.
Stock exchanges are the venues used for trading stocks. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are two of the country's most important exchanges.
Primary Market Direct stock sales to investors are made by companies on the primary market. When a business makes its initial public offering (IPO), something happens. It might also happen if the company later decides to raise more money by selling more shares at a predetermined price during a new round of investment.
Only investors are involved in the secondary market; businesses are not. Stock investments are made on the secondary market.
Why Stocks Increase And Decline A stock's price movement can be influenced by a variety of underlying factors. The most significant and essential concept is, however, the law of supply and demand. When there is a large demand for a stock and few owners are prepared to sell it, the price of that stock rises. In contrast, if there is a large supply and little demand, the price of a stock will fall. Demand is influenced by news, a company's performance and profits, among other things. If it is believed that a company will shortly unveil a hotly anticipated new product, the price of its shares may rise. Businesses, on the other hand, may experience economic setbacks that are beyond their control. The stock market is therefore a very dynamic phenomenon. Like it? Share it!More by this author |