What is a Stock Market?
While getting familiar with the term ‘stock market’ for the first time, some of us may be unsure of what the term implies and the total working of the stock market is highly puzzling. This is not true all the time. Some of us might have gone through what the stock market is, at least as a theory; even in our schools but if stock market is not a part of your subject, then you may try to Google for relevant facts where the Wikipedia article, being user edited, has something to say.
Of course, the internet is a good place to learn the basics of the stock market. You can read books, watch TV programs and do a lot of other stuff to learn the basics of the stock market. If you want to learn further about the stock market, seek the advice of experts and trade pundits. They can make you gain insightful knowledge on the stock market. Let us move towards what a stock market is as we proceed to learn about the stock market.
Each unit of share costs you a certain amount of dollars. This price of a share is neither constant nor fixed. The price of each company’s share is determined by several factors including the climate, if it has to do something with the product or the kind of service offered by the company. Then, when the price of a particular share increases, you earn profit through the difference between the price that you purchased the share and the price in which you sold it.
It is like price in which you sold the share minus the price in which it is bought. If you sell those shares when the price is low, again the price in which you sold the share minus the price in which you bought the share gives you a negative result. This means that you have lost the amount that is derived from the figure shown through the subtraction.