All about 'STOCK MKT'

Hello Folks,

Here is the most awaited topic STOCK MKT. 
I wl try to share most of d basic informations regarding Stock Mkt and points to ponder while investing wid 'Intraday' trading, especially for the beginners and ladies/housewives who hv keen interest but less info in this field.  As this is a vast field we wl talk about this topic in episodes.  We hv to start from the basic nd for dat u wl hv to have a lotta patience. So lets start from the first episode.

Most people understand that a stock market is a place where shares are bought and sold, and in essence this is true. Most people understand a stock market is dominated by traders who speculate on the price of shares to make a profit on the difference between the buying and selling price, and in essence this is true. But a stock is so much more in-depth than these two basic propositions would suggest, and requires some deeper analysis to get to the bottom of what's really going on.

A stock market is a primarily a virtual exchange of securities (that is, shares and debentures, which companies use as a means of raising finance) and derivatives (i.e. virtual instruments such as contracts that relate to assets and securities and can be traded). It is virtual in the sense that the market is an intangible concept, rather than a physical place, and as a result of advancing technologies traders can now get involved with little more than a laptop or mobile phone. The market brings together a range of traders of all shapes and sizes - from small, one-man bands trading for their own personal gains through to hedge funds managing billions in assets, and everything in between.

The price of a share at any given stage is dictated by supply and demand within the market, and rises or falls every time a share is bought or sold. This effectively means that shares are priced by the collective will and attitudes of the market, comprised of all the traders and investment houses that actively trade in those securities.

Stock markets generally trade over a set duration of hours, usually reflecting the working day in their particular region, allowing the zealous trader to trade different markets round the clock - from London to New York to Tokyo - while affording those companies so listed to raise capital in the form of initial share issues to the market. As a result, the markets operate on a slick basis almost around the clock, bringing together buyers and sellers of securities and giving businesses and governments a free, unadulterated bellwether for the economic and commercial outlook of a given sector, industry or economy.

In essence, that's the foundation of what a stock market is, and it's by no means a comprehensive study. Getting to know the markets requires lengthy research and an understanding of business, economics, law and politics. Yet for those that do get to grips with how the markets operate, the allure of trading profits is sufficient rewards for all their hard work.

That's enough for today, for further info see u soon with the second episode.

Info : finance advisor.com