It would be difficult to discuss how to get started with stock market when we don’t even know what really “stock market” is. As defined by the Wikipedia, stock market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading company. The shares are traded through exchanges or over-the-counter markets.
Market participants include:
· Individual retail investors
· Institutional investors – mutual funds, insurance companies, banks, and other public traded corporations
For individual retail investors, for example there’s a company named Ant’s Appliance Center. Thinking that being a part owner of that company is cool, we can buy shares of Ant’s Appliance Center. So, when the Ant’s Appliance Center earns profit, the shares we buy increases. However, if the profit decreases, we’ll also lose money.
For institutional investors, the stocks are listed and traded on stock exchanges. The market prices are efficiently established through a continuous auction process ruled by the law of supply and demand. A dedicated network of traders and brokers ensures that buy and sell orders are implemented in a timely manner.
Asian countries with high stock exchange are Singapore Exchange, Tokyo Stock Exchange, Hongkong Stock Exchange, Shanghai Stock Exchange, and the Bombay Stock Exchange. Would it be bad if we try investing in Philippines Stock Exchange?