Sunday 19 August 2018

Stock Market for Beginners :- Introduction #1

History has shown  that investing in stock market is always profitable and  most easiest way to build  wealth over the long-term .
Almost every member of the Forbes 400 list of the wealthiest people got there because they own a large block of shares in a public or private corporation.

Although your beginning may be humble, this guide to investing in stocks will explain what stocks are, how you can make money from them, and much more.

1. What is stock market ??

A Stock market is the aggregation of the buyers and sellers of stock we can also called it as shares, which represents the ownership claims on business; these may include securities listed on a public stock exchange as well as those only traded privately. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.


       2. What is difference between stock and shares ??

 "stock" is a general term used to describe the ownership certificates of any company, and "shares" refers to the ownership certificates of a particular company. So, if investors say they own stocks, they are generally referring to their overall ownership in one or more companies.In short , stocks and shares are the same thing. The minor distinction between stocks and shares is usually overlooked, and it has more to do with syntax than financial or legal accuracy.

3. What is trador ??

 A trader is an individual who engages in the buying and selling of financial assets in any financial market, either for himself or on behalf of another person or institution. The main difference between a trader and an investor is the duration for which the person holds the asset. Investors tend to have a longer-term time horizon, while traders tend to hold assets for shorter periods of time to capitalize on short-term trends.


4. What is stock exchange ??

Stock exchange is a facility where stock brokers and traders can buy and sell securities, such as shares of stock and bonds and other financial instruments. Stock exchanges may also provide for facilities the issue and redemption of such securities and instruments and capital events including the payment of income and dividends.

Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as "continuous auction" markets with buyers and sellers consummating transactions at a central location such as the floor of the exchange. Many stock exchanges today use electronic trading, in place of the traditional floor trading.




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