Understanding How the Share Market Works
A note on how the share market works : The share market, also known as the stock market, is a dynamic marketplace where investors trade shares of publicly listed companies. Understanding the basics of how the share market works is crucial for anyone looking to invest. Buying and Selling Shares: In the share market, investors buy and sell shares of publicly traded companies. When you purchase shares, you become a partial owner of the company, and your investment can grow if the company's value increases. Price Determination: Stock prices fluctuate based on various factors such as company performance, economic conditions, market sentiment, and industry trends. These fluctuations create opportunities for investors to buy low and sell high, aiming to profit from price movements. Exchanges: Shares are traded on stock exchanges, such as the New York Stock Exchange (NYSE) and Nasdaq in the United States, and international exchanges like the London Stock Exchange and Tokyo Stock Exchang...