HOW TO STOCK MARKET WORKS

HOW TO STOCK MARKET WORKS 

WHAT IS STOCK

COMPANIES NEED MONEY TO HELP THEM GROW
TO RAISE MONEY, COMPANIES OF THE SMALLER STORY CAR SHIP OF COMPANIES INTO SMALLER SHARES" THAT THEY SELL TO PUBLIC. THAT SHARE ALSO CALLED "STOCK

• A Stock is an instrument that signifies an ownership position (called equity) in a corporation and represents a claim on its proportional share in the corporation's assets and profits.
• The stock is also known as a share.
• Ownership in the company is determined by the number of shares a person owns divided by the total number of shares outstanding.

For example, if a company has 1000 shares of stock outstanding and a person owns 50 of them, then he/she owns 5% of the company

THEY USE IT FOR ALL KINDS OF THINGS LIKE BUYING MATERIAL TO MAKE THEIR

PRODUCTS, DEVELOPING NEW PRODUCTS BUILDING PLANTS AND HIRING PEOPLE
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HOW IT WORKS

A STOCK EXCHANGE IS AN INSTITUTION WHICH HOSTS A MARKET WHERE TRADERS BUY AND SELL STOCKS

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 HOW TRADERS CAN MAKE MONEY?

IF YOU SOLD STOCK ON A DAY WHEN PRICE STOCK IS HIGHER THAN PRICE YOU PAID FOR, YOU WOULD MAKE MONEY

TRADERS MAKE MONEY BY BUYING STOCK BEFORE PRICE GOES UP, THEN
SELL IT BEFORE IT GOES DOWN

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 HOW TRADERS CAN LOSE MONEY?

IF YOU SOLD STOCK ON DAY WHEN PRICE OF STOCK FALLS BELOW PRICE PAID FOR IT, YOU WOULD LOSE MONEY