Introduction to the Stock Market
It is said that the working of a stock market is all about informed decision making. Since in the present world of finance, system failures, human expectations and national afflictions can make things so unpredictable, it becomes necessary to have a deep rooted knowledge about the concept of Stock markets. In this article we would try to give you a brief introduction about Stock Markets.
According to Wikipedia, “Stock Market is a public entity which is especially meant for the trading of a company’s stock s or shares and derivatives at an agreed price” In a stock market, both listed as well as privately traded securities are traded. Stock Market is basically, guided by the risk factor and in the Indian Market the general tendency is to avoid the element of risk by all means. This not an effective strategy to deal with risk. In financial decisions risk and return are correlated. It is nothing but balancing your risk and return so as to earn the highest possible profits. Stock market provides financing through the issuance of shares and stocks and enables the subsequent trading thereof. A stock market is a very crucial element of the financial system of an economy.
Securities market is a platform where trading of securities in the form of financial instruments that are easily transferable by sale takes place. The securities market, basically consists of:
- Primary Market: this market is the channel for new securities. When a company lists its shares for the first time, it is called the Initial Public Offer (IPO).
- Secondary Market: this market is the channel for the further trading of existing securities or those securities which have been previously issued.
Trading in the stock market is dependent on the forces of demand and supply. After the computerization of the functioning of the stock market, the De-materialization account has replaced the old open outcry system of trading. You just have to channel your stock to a broker who is a member of the stock exchange. Stock Market is very volatile and if you wish to make good money from your investment then you must keep a vigilant eye on the bullish and bearish trends in the stock market.
If you want to enter the stock market, it is better to gain the knowledge, information and understanding of all the procedures and functioning of the market. We at EduKart.com have realized the dynamism of this body and hence we have devised a detailed course in Stock Market.This certificate course in stock market imbibes all the essential details of the stock market covering topics like Indian financial system, finance essentials, primary markets, secondary markets, depositories and demats, Mutual fund investments, understanding IPO application and exploring NSE portal.
The course explains the working of the stock markets and explains the day-to-day terminology used on the trading floor.
For further details about the course visit: EduKart.com certificate course in stock market