Sunday, August 19, 2012

What is Stock Market?


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?

13 comments:

  1. Stock market should be popularize it is a better investment vehicle thanks for this info

    ReplyDelete
  2. STOCK MARKET for me is the BRAIN. It holds the EQUILIBRIUM of the so called SUPPLY and DEMAND of a PRODUCT. Not only the product but also the increase of claims of jobs.

    ReplyDelete
  3. Investing in stock market is something that we want to consider, I need to learn the ropes and this post is a good start.

    ReplyDelete
  4. I worked here before. Its a good investment for your money but of course comes with great risk as well.

    ReplyDelete
    Replies
    1. whew. the curiosity strikes me that's why Ive blogged this.. but yeah, like a gamble, too risky.

      Delete
  5. Stock market will always be an alien terminology to me. I am not so into finances and stocks etc. But, I want to try to venture into stock marketing. IT looks challenging.

    ReplyDelete
  6. Stock market has ups and downs but if you have a luck then you will earn big time on shares and stocks.

    ReplyDelete
  7. hahaha I have always tried to analyze the stock market and thanks to you now I a bit understand of it.. this was never mentioned in schools. hahaha.. thanks for the share

    ReplyDelete
  8. Stock is a good investment ,it is actually al ong time investment ,once you put your money to stock ,don't expect it anytime you needed it.

    ReplyDelete
  9. I haven't really invested in stocks. One needs to familiarize the market and economic conditions in order to choose the right companies to invest in.

    ReplyDelete
  10. Stock market is where businessman relies upon in terms of investing and such. Good knowledge for me here.

    ReplyDelete
  11. Hi, pwede ba to isabay sa slimming tea?

    ReplyDelete