What Is Stock Market? How It Works? – Stock market is a place where investor buy and sell investment mostly stock .Which is share of public company to ownership. Stock market majorly refer to to the standard and poor 500 or the dow Jones industrial average.
When you buy this stock in public sector industry you buy a very small piece of that company pass it’s a difficult to each company.the dow and S and P index include a part of stock market. Their performance is seen in entire market .To invest in stock market you don’t have to be officially investor to invest in it . It’s open for all who are interested to invest in stock market.
What Is Stock Market?
The stock market is governed by the US security and exchange. SEC’s Mission is formed to safe investor,lawful and efficient market.। the SC was launched to the rise of investors to invest in stock market particularly those who anciently underserve community,to stock market prosperity. You might have been seen that the stock market moves up and down aur close higher and lower a day in news headline it means that the stock market have been move up or down or for the investor who buy the stock to gain the profit or or has loss in investment.
How Does Stock Market Work?
The stock market works on very simple principles it let the buyer and seller to thrash out the price trade in market.
Stock market work on the exchange of network . You might have seen the Bombay exchange or BSE. IPO help the companies list share of stock exchange. Investor buy the share of company which increase its business and share of company. Investor can buy and sell the share by themselves and interchange track the supply and demand of every listed stock .
That supply and demand help to control the price for every security or at the level at which the stock market members are willing to sell or buy .The buyer bid for the highest highest amount willing to pay usually the lower amount the sellers ask in exchange.
This difference is called as bid ask spread for trade the buyer needs to increase prices and the seller needs to decrease hers this looks very difficult but computer algorithm is used for most of the price calculation. While buying stock you will see the bid-ask ans bid ask layout yours broker website.But in of the cases the difference you will see in pennies and women’s concern for beginner and long-term investors.
In Ancient time the stock market was in a physical marketplace . At that time it work through internet and online trader’s every single trade happen stock by stock basis Overall the stock market price cab by the news headlines political and other factors.
In stock market there are the two types of investors first who buy called bull and second who sell are called bear. Stock market in India all started in 1975 mainly two stock exchange Bombay stock market and National Stock Exchange stock market was started in 1875 while the national stock market was found in 1992 but it started trading 1994.
Stock market is up very good platform for for the investors to make profit in less time the stock market opens in India at 9:15 a.m. and close in 5:00 p.m. in India the highest stock of the company MRF which is 80860 the second most company to have high stock is Honeywell auto mobiles which one stock value is 40250.
Stock market help to rise the net worth of business it also create a platform for small investors who can make a good amount of money e by investing in stock market.