The stock market is an everyday term we use to talk about a place where stocks and bonds are "traded" – meaning bought and sold. For many people, that is the first thing that comes to mind for investing. The goal is to buy the stock, hold it for a time, and then sell the stock for more than you paid for it.
The stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company.
A stock market is the market that people use to trade (buy & sell) shares, which are like small pieces of the company that a person can own. The value of the share depends on how many people want to buy it and how many people are selling it. If many people want to buy a stock, the price will go up. If there are more sellers than buyers, the price will go down.
The stock markets is the place of trading the shares to investors and marketplace. The National stock exchange and Bombay stock exchange is the popular stock exchanges. The share should be listed in the recognized stock exchanges is needed for the every investor. Only listed shares are traded in the stock exchange.
its a market where stocks are traded (i,e they are bought and sold)
You can make a lot of money if you pick the "right" stock
You can also lose a lot of money if you pick the wrong one
2 things things you must remember regarding the stock market
1) The ONLY money in the stock market comes from investors
THAT means that for anybody who makes a million other investers MUST lose a million
2) Its FAR easier to be one of the losers than the winners
And 1 thing to bear in mind
You will see a lot of books supposedly telling you how to make millions
The thing you have to think about is
If YOU had a foolproof method of making money in stocks and shares would you write books about it, or would you use your "foolproof method" and make millions
a legalized gambling enterprise. I have won and lost with this.
Absolutely.
Did you happen to hear the sequel? If you invest in the wrong markets, you can lose everything?
Stock markets are places where people invest in market holdings or companies. If that company does well - it may increase in value and the investor makes a paper-profit. If the company doesn't do well, there is a strong possibility that the investor will make a paper-loss.
Start learning about investing on http://www.investopedia.com/
It's basically like splitting the company up into thousands of what are called shares, owning shares means that you have a certain investment and a little bit of ownership in the company. If a company is doing well, like Apple, then their stock prices rise and become more valuable. As well, if a lot of people are buying stocks in say, gold, the price of the stock will rise because of the demand. This is how investing works, you buy stocks that you hope will go uyp in price so you can sell them and make a profit. The stock market collapse was a near universal drop in value for every stock, so a lot of people lost a lot of money.
You can make and lose lot of money. It is something like a fancy casino where you are betting against the dealer. It takes some time to learn how everything works and a descent start up capital (5-10k) but even than you can still lose money :)
I heard you can make a lot of money from those if you invest in the right one.
