A brief overview of Stock Market

Many people are familiar with stock market but in this case there is another fact also many are also not familiar with this market and terms like stock, commodity, purchasing and selling of shares equity cash MCX, NCDEX and so many people who are not expert in financial domains do not understand these terms and the term share market remains a difficult terms to understand there are situations when someone is talking about share market prices and people scratch their heads about what prices the former is talking about. People think that this market can lead any big organization to bankruptcy for example if we take stocks stocks as a representation of the company's assets and profits. If the company makes a profit, this value is divided yearly among the stockholders in the form of a dividend. If a company makes a profit of rs 100,000 this year, and it has 20 shareholders holding 1 stock each, the shareholders would receive a dividend of rs 5000.

Let us take a brief overview of share market as a formal definition stock market tips or share market which is one and the same thing is an aggregation of buyers and sellers where they purchase and sell the stocks or shares of various companies listed in nse and bse in this market the exchange of shares is done both physically and virtually, brokers purchase and sell the stocks depending on the needs and requirements and the people and the company’s they represent.

There are two types of shares first is primary stock which is used for trading of initial public offerings and other new issues which are offered and secondary stock for trading of existed stocks in the market. Stock market is not a confusing term in order to understand about this market one needs to learn and understand some common terms and should try to understand some common charts when this initiative is taken anyone can become a successful investor or trader in the share market.

Here are some of the common terms used in stock market first is stock price which is the rate or the value at which stocks are purchased and sold any company’s stock price is affected by its position and performance. Then the second point is reading stock market charts which provide current performance of shares, then third is 52 weeks high and low which shows data of stocks over a fifty two weeks period and last one os bulls and bears which represent two trends bullish and bearish in bullish condition the market is up that is in profit and in bearish condition the market is going downwards means in loss.