What Is the Stock Market

Introduction

The stock market is the place where all the big companies in the world are represented. The stock market is the place where buyers and sellers trade stocks that belong to a company at a set price. Stock represents a supply of money that was raised from company individuals or from some other organizations. The stock market works just like any other market, some people are selling stock while others buy stocks. The stock market works on simple principles like buying low and selling high.

History

People in the stock market are trying to buy stocks at the lowest price possible and sell them at a higher price. Prices on the stock market are influenced by the success or downfall of the company that is present on the market. When you want to buy stock all you have to do is call a broker and he will make the proper arrangements for you to buy stocks. A broker is licensed in the buying and selling of stock and are usually employed by a brokerage firm.  

The first stock market in the world was the Amsterdam Stock Exchange. This stock market was created in the 17th century and since then people have started to buy or sell company shares. Almost every developed country in the world has a stock market. Some of the most important stock markets in the world are the United States, China, Japan, Germany and the United Kingdom. All the important companies are represented on the stock market so you can buy stock for companies like Coca Cola, Microsoft and Apple.

The stock market is a place where you can make a lot of money, but you also need to have money to invest. Now everybody can access the stock market with the help of online trading platforms. Before the online era, trading stock was harder because you had to contact a brokerage firm, and they made all the important transactions. Now everybody can enter the stock market, and make a profit by buying and selling shares. In the stock market you can also trade raw materials like oil, gold, sugar or wheat. The stock market is present in every aspect of our lives.  When you visit the mall and purchase something, you are helping a company and their stocks. 

Features

Buying stock makes you part of a company, and if your company is doing well then your share price will grow. After your shares have increased in value, you can sell them and make a profit. This is the main principle of the stock market. The trick about the stock market is choosing the right shares to buy and when to buy them. A lot of people have made great profits on the stock market, but this is no easy task. To make a profit on the stock market you have to invest large amounts of money. But if you want to steadily increase your profits, you can also be part of the stock market. Earning money from the stock market can be a great way for you to increase your assets.

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