A share market, also referred to as an equity market, is a coming together of buyers and sellers of shares and securities listed on a stock exchange. The beauty of investing in the stock market is, no work is required from as all you have to do is sit and watch as your company grows while collecting dividends. In recent years, the stock market had witnessed massive changes driven by constant improvement in trading technology. Anyone can now own stocks given the high popularity of this lucrative investment plan. However, people do not fully understand how the stock market works and there is a common misconception that it is magic answer to all your financial problems. Just like any other investment, investing in the stock market needs a thorough research of the market before committing any of your money.
Types of stocks: - There are mainly two types of stocks.
1. Common stock: - This is the form in which majority of stock is issued. It is the common type of stock with simple features. They represent ownership in a company and dividends claim as a portion of the profits.
2. Preferred stock: - These represent a greater ownership in the company but without the same voting rights. Ownership of preferred shares means that, you are entitled to payment of a fixed amount of dividend for the rest of the company's life.
Trading and buying of stocks:-
Buyers and sellers meet on exchanges where stocks trade, and decide on a price. Exchanges can be physical locations on a trading floor where transactions take place or can be virtual, where trades are made electronically by computer networks. It is also important to know the difference between primary market and secondary market. Stock prices constantly change due to the market forces of demand and supply. If may people want to buy a stock, its demand goes high making its supply low thus its price goes up. Conversely, if there are many people selling a stock than those buying it, the supply will be greater than the demand and the price will fall. You can buy stock using two types of brokerages. Full-service brokerages charge a lot but will give you expert advice on how to manage your account.
For more information regarding the stock market and many other services like Equity tips, stock tips, Commodity tips, option trading tips, MCX trading tips and many other visit @ www.equityresearchlab.com or call @ 8109999233.
Types of stocks: - There are mainly two types of stocks.
1. Common stock: - This is the form in which majority of stock is issued. It is the common type of stock with simple features. They represent ownership in a company and dividends claim as a portion of the profits.
2. Preferred stock: - These represent a greater ownership in the company but without the same voting rights. Ownership of preferred shares means that, you are entitled to payment of a fixed amount of dividend for the rest of the company's life.
Trading and buying of stocks:-
Buyers and sellers meet on exchanges where stocks trade, and decide on a price. Exchanges can be physical locations on a trading floor where transactions take place or can be virtual, where trades are made electronically by computer networks. It is also important to know the difference between primary market and secondary market. Stock prices constantly change due to the market forces of demand and supply. If may people want to buy a stock, its demand goes high making its supply low thus its price goes up. Conversely, if there are many people selling a stock than those buying it, the supply will be greater than the demand and the price will fall. You can buy stock using two types of brokerages. Full-service brokerages charge a lot but will give you expert advice on how to manage your account.
For more information regarding the stock market and many other services like Equity tips, stock tips, Commodity tips, option trading tips, MCX trading tips and many other visit @ www.equityresearchlab.com or call @ 8109999233.
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