Stock market - Explained

In our modern society everyone needs money to survive in this world.The Economy place a major role as the backbone for societal well-being by determining the availability of goods and services, shaping employment opportunities, and impacting overall living standards.

So let us deep dive about a important thing of the economy

What is a stock market?


    The stock market is a platform where buyers and sellers trade shares of publicly listed companies. Companies issue shares to raise capital, and investors buy and sell these shares.

       By owning the stock, you are partially owning a small part of that company.So you give opportunity to them by giving your money to improve them and if they get profit your stock value would also a increase.

How really stock market works ?

Stock :

A stock represent share of a public company including claim on profit of that company

yes, you can buy n number of share from a single company

who fix the stock price :

a stock price is mostly determined by the supply and demand of the company stock. here, demand refers to amount of shares that people want to buy

and supply refers to how many stocks are provided by the company.

real purpose of stock market :

gives company capital :

when a company entered into stock market, it offers a small amount of share to public so that people can buy their stocks

gives ability to investors :

Investors who buys stocks of a company, Aims to take profit from price changes and capital appreciation.

History of stock market :


     Here’s a small history about stock market

One of the earliest stock exchanges was established in Amsterdam in the 1600s. The Amsterdam Stock Exchange, founded in 1602, allowed investors to buy and sell shares of the Dutch East India Company.

In the United States, the New York Stock Exchange (NYSE) was founded in 1792 when 24 stockbrokers signed the Buttonwood Agreement. Over time, other stock exchanges emerged, such as the Nasdaq in 1971, known for trading technology and internet-related stocks.

modern stock market :

The modern stock market is a complex and dynamic financial system shaped by various factors. Here are key aspects characterizing the stock market:

Digitalized market :

All the stock exchange markets are became electronic,faciliated by advanced trading platforms and algorithms. This shift has increased speed, efficiency, and accessibility for investors.

Globalization :

Stock markets are interconnected globally, allowing investors to trade shares of companies listed in different countries. 

High frequency training (HTF) :

High-frequency trading, driven by sophisticated algorithms, enables rapid execution of large numbers of trades. This practice has both proponents and critics due to its impact on market liquidity and stability.

Finally, How to earn money in stock market :

To earn money in the stock market, start by educating yourself on market basics, defining clear financial goals, and creating a diversified portfolio. Conduct thorough research, stay informed on market trends, and manage risks effectively. 

Consider a long-term perspective, utilize suitable investment strategies, and be mindful of transaction costs. Reinvesting dividends can compound returns over time, and continuous learning is crucial to adapt.

At last, Never trust stock market blindly anything would happen in a split of second so it is necessary to invest a small amount of money and learn fully about the stock market then start your journey as a "TRADER".


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