The stock market refers to the public markets that subsist for buying, selling and issuing stock that trade on the inventory exchange or over-the-counter (O.T.C.). Stock market is also known as share market or equal market, which correspond fractional possession in a company and stock market is a place where investors can buy and sell possession of such investible properties. The stock market or equity market offers opportunity to investors to increase their income without the high risk of entering into their own businesses with high overheads and startup costs.
The stock market works through a network of exchanges. Companies list shares of their stock on an interchange through a procedure of initial public offering (I.P.O.). Investors purchase those shares, which permits the company to enhance money to ampifies its business. Then, investors can purchase and sell these stocks among themselves and the exchange paths the supply and demand of each listed stock. That supply and demand help determine the price for each security, or the levels at which stock market participants — investors and traders — are willing to buy or sell. Some traders think that a company will proffer the price up, while some think it will do poorly proffer the price down. Sellers strive to get as much as possible for each share, hopefully devising much more than what they paid for it. Buyers try to get the lowest price so that they can sell it for a profit later. Stock market works in a declining and increasing state. It’s all about the share being up and down. Investing in a stock market carries more risk, but when we approach in discipline manner it will be one of the efficient ways to build up one’s net worth.
A stock exchange facilitates stock brokers to trade company stocks and other securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock buyers and sellers.