Share Market
The share Market is a public exchange for buying and selling company shares and operates on the principles of supply and demand for shares. People are willing to pay a certain amount for an asset (a stock, in this case) and are willing to sell something they own for a certain price. Therefore, every asset has a value – which is an individual’s preference and price – which is the market’s determination of the asset’s value.
How does the stock market work?
To understand how the stock market works, let’s first take a look at the economics of supply and demand. After all, the stock market is a cross between supply and demand, and without adequate supply and demand, there is no stock market.
The current price of the share;
The stock exchange works like an anonymous auction machine a person sells his goods at auction and waits for others to bid the right amount. When the selling price matches the buying price, the trade takes place and the stock market goes down.
When multiple buyers want to buy a stock, they bid on the stock and the highest price is called the bid price.
When several sellers start to sell the stock, they ask for a certain price. The lower of this price is called the asking price of. The transaction occurs when the high
bid and the low ask meet.
EXAMPLES
The full list of scholarships and their respective sizes can be found here. We have the two largest exchanges in the world: the New York Stock Exchange, which owns companies with a total market capitalization of about $ 30 trillion, and NASDAQ, which is one-third the size of the NYSE. Japan follows the NYSE and NASDAQ with about $ 6.5 trillion in total market capitalization, and Shanghai and Hong Kong follow next with $ 4 trillion and $ 3 trillion each. Just by looking at the size of their stock markets, we can hire and decide on the size of the companies. This gives us a general idea of what the size of the economy could be.
India has two stock markets: the National Stock Exchange and the Bombay Stock Exchange, each of which has $ 2,000 billion in capitalized stocks. Remember that just because there are 2 exchanges does not mean that we can add them up to get the total number of companies that have IPOs.
Additionally, even stocks that are privately traded are part of the stock market, and once the market opens, the price reflects non-OTC (Over Counter) trades that took place during the non-trading period. -negotiation.
ADVANTAGES
The stock market is the main bridge between an investor and a business. It helps to facilitate the movement of money in one direction and ownership by stock in the other direction.
The ability to know how people value a business is very valuable information for business owners to pursue their future. Managers can collect public perception; CEOs can make strategic decisions and CFOs can look for different ways to raise money most efficiently.
The stock market balances the rules necessary for the smooth running of the economy.
Guarantees the investor ownership of his shares.
Acts without prejudice – do not take into account caste, creed or financial standing. offers equal opportunities to all.
Maintains sufficient liquidity for the flow of information.
DISADVANTAGES
The process of going public for the
is tiring and mundane – the process of taking on debt, by comparison, is much simpler and easier.
Legal costs are sometimes low, but sometimes just as high. Not all transactions are free.
The flow of information is necessary to analyze the performance of a company, but because of this importance, those in power attempt to manipulate this information.
There are many instances where the stock markets have been swindled for the benefit of the intelligent and to the detriment of the common man.
CONCLUSION
The stock market is like most markets a place to trade things and, unlike most markets, due to regulations, controls and transaction costs. It allowed businesses to grow and people to get rich. The stock market made smart and patient people, one of the richest like Warren Buffet, but also people like Jordan Belfort – a rich impostor. This allowed Jeff Bezos to conduct his business by raising funds
