Sunday, 20 November 2011

Share market or stock market, general ideas for beginners

Like all other markets share markets (stock markets) are for buying and selling of stocks and shares. Stock markets are also known as stock exchanges. There are two types of share transactions. The first one is direct issue of new shares by the company and it is known as Initial Public Offering (IPO) and the second one is stock exchanges where the issued shares are trading (buying and selling) with profit or loss.


Stock broking firms: When we transact with shares, chances are there to get a good profit or big loss. So we have to learn about the stock we are going to trade with. We should know the trend of the stock, reliability of the shares we wish to trade and so many other factors which may affect the value of shares. A well-developed stock broking firm can do a lot for this. A good stock broking firm provides reliable share trading tips and other share market information. So we should attach with a good stock broking firm to get a good profit from stock trading.

Effective Communication Medias: Internet and other mass communication Medias can do a lot for giving information and stock market tends of stock and related matters. This information is valuable for taking a right decision at the right time.

Listing of stock in stock market: Companies usually list their shares (stocks) in stock exchanges and the public can deal with the shares from the listed stock exchanges. The listing is just like a merchant or a manufacturer displays their products in the market. Stock exchanges get revenue from this stock trade and stock listing. So they try to get most listing of good stocks of strong companies.

Trading symbol of stocks: Each stock exchange assign a trading symbol (Ticker) for a particular stock with a few letters to name each stocks and this symbol is helpful to know the particular stock.

Stock Exchanges : Stock Exchanges give good information about each stock they trade with. There are stock exchanges all over the world and main cities just like New York stock exchange, London Stock Exchange, Bombay stock exchange etc. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are two leading stock exchanges in India.

Regulatory Agencies : Each country has their own regulatory agencies to control over stock exchanges and its activities and to protect traders and investors. In India SEBI (Securities and Exchange Board of India) is regulating the stocks and other securities. In U.S.A it is U.S. Securities and Exchange Commission to look after and regulate securities trading.

A stock trader must have a foresight and a strong decision-making power. He has to collect all reliable information and update these information time to time and remember that you are playing with your hard-earned money. At the beginning he should find a good financial consultant or a reliable stock broker before starting stock trading.

Share market or stock market


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3 comments :

  1. [...] You can make a lot of money and at the same time you can lose a lot. But if you are careful in stock investing, you can cut the risk of losing money and can increase return. Invest in safe [...]

    ReplyDelete
  2. [...] You can make a lot of money and at the same time you can lose a lot. But if you are careful in stock investing, you can cut the risk of losing money and can increase return. Invest in safe [...]

    ReplyDelete