Can anyone tell me what is a stock market and what are shares??

Question

plzzz...wht do you mean by stock market how does it works..what are shares....how come shareholders earn money...plzz explain me the concept..

Answer 1

Check here for some good info:

http://estocktrades.info

Good Luck!

Answer 2

A stock market is defined as a market which shares of company stock are bought and sold.  Company stock is the capital (money) raised by a corporation through the issue of shares entitling holders to an ownership interest (equity).  So for instance if ABC Corporation, listed on the NY Stock Exchange (NYSE), sells shares of their company to investors at a certain price (which is typically the value of the stock but be careful because some stocks are over-valued).  If the company does well, chances are the stock goes up and you make money - if it does badly it could fall and you lose money.  So if you buy 100 Shares at $6.00 per share - you spent $600 to invest.  If tomorrow the stock goes up to $6.50  - you've made $50.00 because the shares are now worth $650.00  In essence a share is the unit that values how much interest you have in a company.  So if you are interested in buying stock - start off by investing in a company that manufacturers things you buy because you are helping the company's revenue (earnings).  So if you eat McDonald's everyday buy MCD stock.

Answer 3

good and interesting question namrata

stock market is the place where companies trade(buy or sell ) their stock(shares)

meaning of shares: suppose imagine a company with 100 partners then each partner is 10% share holder so each person has 10 shares in that company....

that is the simple concept of stockmarket and shares....

Answer 4

welll i dun knw much abt this bt as u dun hv ny answer till yet so i m giving u one .

share means u r goin to share compny profit n loss .say if i hv a small comp and i need money to make my buisness large so i will sail sum percentage of my comp for money ..nd i will use this money for my buisness and if i get profit thn market value of my comp will increase it mean the person  who has share in my compny will get profit on each share ..n if i get loss then he will get loss

and share market is d place where v do all these things.

Answer 5

STOCK MARKET------

         is a private or public market for the trading of company stock. stock market may be a physical place, sometimes known as a stock exchange, where brokers gather to buy and sell stocks and other securities. The term is also used more broadly to include electronic trading that takes place over computer and telephone lines. .........

                      The stock market is one of the most important sources for companies to raise money.

SHARES------------------

                              A SHARE is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, use of the word shares in the plural to refer to stock is so common that it almost replaces the word stock itself. And especially in American English, the plural stocks is widely used instead of shares, in other words to refer to the stock (or perhaps originally stock certificates) of even a single company. Traditionalist demands that the plural stocks be used to refer only to stock of more than one company are rarely heard nowadays.

The income received from shares is called a dividend, and a person who owns shares is called a shareholder.

Answer 6

Simplistically, companies need a means of raising capitol. A Stock Market (There are many Stock Markets ex Wall Street, Frankfort Exchange, Tokyo Exchange etc)is a place where people with Capital gather, while Companies and Enterprises gather to present themselves to people who invest Capitol.

A share is the way a company is divided among the owners, There are many types of shares among the share types are voting and non voting shares, a voting share will allow a person to have a say in the company's decisions. When capitol needs to be raised the company will increase it's amount of shares by agreement with the currant owners,(currant share holders). These shares will be presented to the Capitalists through the stock market where the shares will be purchased. The price a share floats, that is one day each share may be worth one dollar and then company may make a good business decision and everyone in the stock Market will now pay one dollar and ten cents for a share.