How the Stock Market works??????
What is stock???
Companies need money to help them grow.They use it for all kinds of things like buying materials to make their products developing new products building plans and hiring people to work.
To raise money companies of often split ownership of the companies into smaller shares that they sell to the public the shares are also called stocks.
A stock exchange is an institution which host a market where traders can buy and sell stocks.
Traders make money by buying the stock before the price gives up and then they sell it before it goes back down.
The price of the stock reflects the available information about the financial health of the company.
Traders watch the stock rise and fall and make decisions to make a profit.
How Traders Make Money ?????
If you sold your stock on that day when a price of the stock is higher than the price you paid for it you would make money.
How Traders Lose Money ?????
If you sold your stock on a day when the price of that stocks falls before the price you paid for it you would lose money.
Published by : Patil Educare
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