How does the stock market work?
Chapters:
00:00 – Introduction
00:36 – What is stock?
01:05 -How the stock market works?
01:27 – Primary Market/IPO
01:58 -Secondary Market
02:22 -Process of buying stocks online
03:10 -Supply & Demand In the stock market
04:06 -Conclusion
In this video tutorial, we will discuss what is stock, how the stock market works, the primary market/IPO, the secondary market, process of buying & selling stocks online, the supply & demand in the stock market, etc.
How does Stock Market work?
Stock markets can really make our heads spin. In this short video, we have tried to explain the stock markets to you in simple words to help you understand this complex system.
Stock means “share” or a part.
Stock market is an interconnected world of stock exchanges, brokers, and investors where you as an investor can buy and sell shares and securities of companies listed on stock exchanges like the Bombay stock exchange.
Before investors can start buying shares of a company, the company has to register itself on the stock exchange using an Initial Public Offer or an IPO.
Once the company issues its stock to the public, investors can then start buying and selling the company’s shares among themselves in the secondary market.
This process is usually carried out through a broker acting as an intermediary between the exchange and the investor.
Suppose you, As an investor buy a company’s stock and that company is successful; seeing this, other investors start to buy stocks of the same company. The stock price will go up & if you sell at a high price you gain profits.
However, if more and more stocks are sold, the demand for the stock goes down, and the value of the stock falls. And if you sell at a lower price(than you bought on) then you encounter losses.
So, now that you know will you invest in the stock market?
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