WHAT IS THE STOCK MARKET

What is the stock market? Well, the stock market is a huge arena of selling and buying shares or interests in companies. There are different types of markets for trading like the Stock market and Bond market. Company’s shares, derivatives and securities are traded in the Stock market. The Bond market is present all over the country and Bonds are traded here. The Size of the world wide stock market is found to be fifty trillion dollars. The stock market registers and deals stocks which help in bringing the people who buy and sell the stocks together.

Some of the famous stock markets in the world are NASDAQ, AMEX, London stock exchange, SENSEX, Paris Bourse etc.

The stock market consists of investors and some of them invest a small capital value in stock and some others invest a very large capital in the stock market. The instructions given by instructors for trading stocks are handled by skilled people in the stock market. When a company wants to raise money, the principal basis for doing it is with the help of stock markets. It helps the company to add up funds for its development. Due to this the company goes public and this is a very good method to raise funds; unlike real estate, where the income is very low.

The economy of a country mainly depends on the stock market. When the share prices rise it helps to define the increase of investment in a business. The central banks always look on the growth of the stock market because the prosperity of a household also depends on the prices of stock.

The stock market index keeps track of the price of stocks in the market. There

Are many stock market indices like Euronext indices, the S&P, the FTSE ETC..

The stock price of a company usually mirrors the total value of that company in the market.

Now, in these current days, large volumes of active trading are not done mostly in active exchanges and people prefer investing through firms like Goldman Sachs Group etc and this is found to increase in forth coming years.