How stock market works
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Transcript of How stock market works
How stock market works
If you start investing in the
stock market you probably wondered how stock market
works
The stock market is the area to make money but only
when you have full knowledge about the
stock market.
If you are planning to invest in the stock market you should
be aware of the facts and details about the
stock market.
This is the basic question of every
stock market beginners that how stock market works. The answer is very
simple.
Companies go public to offer their shares or stocks and public buy shares and this
whole process is known as stock
exchange.
People who are interested in the stock market can use stock exchange for buying and selling shares of
the company.
There are many factors involved in the stock market that helps you to know how stock market works.
Stock prices and market capitalization are the two factors
that help to increase your knowledge
about stock market.
*Stock prices*
Stock prices means the price of a
specific share sells for.
Many market factors helps to set these
prices like health of economy, trends of trading, technical
and financial status of the company.
*Market capitalization*
Market capitalization is the actual value the
company or stock that is up for sale.
To calculate market capitalization of the
stock we can use following formula:-
Number of Outstanding Shares *
Price of Stock = Market Capitalization
of the Company.
Once you have learnt the basic
formula then you have to need to
know about how to buy and sell shares.
You need to create investment account
to purchase stock and you can open it with a local stock broker. It is very simple to set
up and fund it.
After read this article now you have the
answer of your question, how stock market works and
how to invest in the stock market?
Hopefully there will be no doubt in your mind about stock market and stock market investing.
If you want to invest in the stock market then above things should keep in your mind
because these are basics of the stock market.
http://www.howstockmarketworks.com.au