Starters Guide to the Stock Markets
Market in layman’s language is a place where we do purchasing and selling of different products or goods. Similarly, stock market is a market where stocks are purchased and sold. This is mainly done online and basically termed as trading. There are ample numbers of companies available to choose from. Make sure the one you choose is listed in the stock exchange. Who Am I If I Own Stock? To become a shareholder in a certain company one has to purchase or buy a stock in that company. A person can become an investor by purchasing a share of a particular company. If the company in which a person invested makes profit than the share of that profit earned based on the number of shares you own is given to you as a dividend in the form of cash or check. But if the company goes in loss or the value of its share decreases than the investor also has to suffer from losses equivalent to the amount of shares he held. Many people prefer to do intraday trading wherein you purchase the share in the morning and sell it in the evening if there is a rise in the price of the share that company. Intraday trading allows you to earn pretty good amount if invested carefully and wisely. A person can opt to keep the share for a day or two and wait for the price of the share to rise if it does not increase the same day. One must keep an eye on the market and read it on daily basis to catch the basic essence of the market. If a company is going in loss people prefer to sell the shares of that particular company to save themselves from loosing on the profit that they might have earned earlier. The market is very volatile now a days and the crash suffered by it has been seen after almost 9 years since 1998.One cannot predict what turn market will take under such condition and therefore has to be very wise and vigilant while making decisions and therefore hasty decisions must be avoided. People fear in investing in company’s who have suffered looses earlier or are being on the same edge from a long time as they cannot trust if the company will make a hike in the coming time. Also the number of people investing in the company help to predict the cost of shares of a company. More number of people investing in a particular company raises the cost of the share of that company. Then there is mutual funds, as the name suggest mutual it id done through mutual purchasing. Shares can be purchased by an individual through the software provided to him by the agency he held his account with. But mutual funds can be purchased only through a agent. In this agent collects the money from various clients and than invests in a particular mutual fund. Now it depends on how wisely and intellectually the investor invests in the market after looking at the rise in price so that he can benefit all his agents whom he has collected money from to invest.
About the Author
Bhrat Brij is freelance writer who is writing about various topics from last two years. Visit his website http://www.bhratbrij.info for more information.
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