How Does the Stock Market Work?
From a small business to a share holder, this is the biggest business transformation that one can ever try. Stock market can make you richer in just one day, but it can bring you so much burden if you are lacking information on what a stock market is. Especially this time that we are battling a global financial crisis, knowledge in investing in a stock market should be properly applied to avoid downfall of the business. For beginners, it is a must that you know the terminologies and features of a stock market.
To define the term, stock market is a public market for the trading of company stock and derivatives at an agreed price. They are securities listed on a stock exchange as well as those only traded privately. It is a venue where company stocks and shares are traded, bought and sold, just like a supermarket. One of its features is that, the liquidity that an exchange provides enables investors to quickly and easily sell securities. Stock market is one of the most important sources for a company to raise money.
