All about investment

by Sastra W

The stock market system is a way for the trading of shares of stock of listed corporations. The stock market is a secondary market for securities trading wherein original or secondary holders of a company's shares of stock can sell their stocks to other individuals within the frame work of the stock market system.

Stock market risks: Is my money really worth it?

Are the risks implicated in investing in the stock market worth my money? In other word, investing in stocks is a risky business. For example, you must watch against investing in "hot" stocks. There are also companies that offer "safety stocks". How stock market price rises and falls.

Considering how stock market price rises and falls is similar to understanding

the prices of other products in the market. Price of stocks rise and fall due to many reasons: i.e. company earnings projections and image, as more investors would want to buy stocks from these merging companies, the demand for their stocks will rise. An insolvency rumor about a company can send its investors to sell all their stocks. If there are more sellers than buyers of stocks then the supply (of stocks) is greater than the demand for stocks thus, stock price will fall, this creates more sellers than buyers. Then a sluggish environment where investors turn into hesitant in buying stocks. When the demand for stocks is not high, prices will go down.

Stock market is like a market place for businessmen. In a stock market however, stocks are sold to the public. Company stocks are sold in the form of shares. The more shares a person buys in a company, the higher his or her stocks are for that particular company.

The stock market consists of the primary market and the secondary market. Primary market is where companies increase finances for their operating expenses by selling shares to investors. A stock market is like an auction house. The buying and selling of stocks begins in different places. If a person decides to purchase stocks in a particular company, a broker is contacted. Usually a floor broker works for the broker or with the company selling the stocks.

At the stock exchange, floor brokers purchase the stock that the investor wants. That investor may decide to sell the stock. Movement of stocks in a certain market causes the constant changes in the prices of stocks.