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Monday, February 18, 2013

An Overview on Share Market & Share Trading

Share market 
Share market is a very common term in today’s world .

What is that attracts people to share market?  or  Is it just the profit margin or anything else?

Let's have a close look over share market......

What is share market?

In simple words it’s the place to buy & sell shares.

Now one might come with the question what is share?

Shares are the single unit of stock. Then what is stock ?
Stock is the capital raised by a company through the issue of shares.

Shares are of 2 types
  1. Ordinary Shares - it not only gives the shareholder the right to profit but also the right to vote. 
  2. Primary Shares - it give the shareholder only the fixed income.
    Let’s have a simple look at how the share market or stock market works?





    Who are brokers? 

    Brokers are the individuals or institutions who are certified to participate in the security market & execute the deal on-behalf of their client & earn commission for it.

    If an Investor wants to sell his shares. He will pass on this information to his broker and ultimately to stock exchange. Stock exchange will make trade electronically.




    This is the simple way how share market works.

    If we closely follow share market/stock market we will often come across with the terms like “bull market” or “bear market”.

    What is “bull market” or “bear market”?

    A "bull market" is a period when stock prices are generally rising. In order to have a bull market a strong & consistent economic growth is must. There are more buyers than sellers.

    A ”bear market” is a period when stock prices are generally falling on the whole. Economic recession can definitely lead to a bear market. it has been observe that after every bear market phase, there is a renewed buying interest.

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