What is the stock market

These days stock market is the most important source for companies or people to raise money. A few decades ago the buyers and sellers were individual investors; they were wealthy businessmen and the family history to specific corporations. Over a time the market become institutionalized means the buyer and seller are institution like mutual fund, investors groups, banks and any more.

Now what is stock? Stock is a piece of ownership for a company. If a company wants to get extra money to grow their business, they can sell some and all ownership of the company in the form of stock. If a man buys 55% of the company stock, he has decision making power of the company. Buying stock is the very popular form of investors. If a man buys 100% company stock, he becomes the owner of that company.

At Last what is Stock Market and how it work? A company goes public and offer share in their company to the public and the buyers are buy that shares to earn more.

How it works? Suppose you buy 100 shares of Reebok Company. You order the brokers to buy 100 shares of that company.  The brokers send the order to the firm’s section. The order section sends the order to the firm's clerk who works on the floor of the exchange where shares of Reebok are traded. The clerk gives the order to the firm's floor trader, who also works on the exchange floor. The floor trader goes to the specialist's post for Reebok and finds another floor trader who is willing to sell shares of Reebok. The traders agree on a price. The order is executed. The floor trader reports the trade to the clerk and the order section. The order section confirms the order with the broker. The broker confirms the trade with you.

In Stock market you can invest in different way like mutual funds, Sharelord, Equity and etc. Sharelord Review has not any risk found any other investment. This is similarly the purchase a land by landlord and rent out the other. Like that you buy a share and rent out to others. This investment is called well educated investment.