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What is the Stock Market?

  The stock market refers to public markets that exist for issuing, buying, and selling stocks that trade on a stock exchange or over-the-counter.  Stocks , also known as equities, represent fractional ownership in a company, and the stock market is a place where investors can buy and sell ownership of such  investable assets . An efficiently functioning stock market is considered critical to economic development, as it gives companies the ability to quickly access capital from the public. Purposes of the Stock Market  –  Capital and Investment Income The stock market serves two very important purposes. The first is to provide  capital  to companies that they can use to fund and expand their businesses. If a company issues one million shares of stock that initially sell for $10 a share, then that provides the company with $10 million of capital that it can use to grow its business (minus whatever fees the company pays for an investment bank to manage the stock offering). By offer
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Stock Trading: How to Begin, How to Survive

  What is stock trading? Stock traders buy and sell stocks to capitalize on daily price fluctuations. These short-term traders are betting that they can make a few bucks in the next minute, hour, day or month, rather than buying stock in a blue-chip company to hold for years or even decades. There are two main types of stock trading: Active trading is what an investor who places 10 or more trades per month does. Typically, they use a strategy that relies heavily on timing the market , trying to take advantage of short-term events (at the c ompany level or based on market fluctuations) to turn a profit in the coming weeks or months. Day trading is the strategy employed by investors who play hot potato with stocks — buying, selling and closing their positions of the same stock in a single trading day, caring little about the inner workings of the underlying businesses. (Position refers to the amount of a particular stock or fund you own.) The aim of the day trader is to make a few
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How Does the Stock Market Work?

  The reality is that investing in the   stock market   carries risk, but when approached in a disciplined manner, it is one of the most efficient ways to build up one's  net worth .  While the value of one's home typically accounts for most of the net worth of the average individual, most of the affluent and very rich generally have the majority of their wealth invested in stocks. 3  In order to understand the mechanics of the stock market, let's begin by delving into the definition of a stock and its different types. Definition of 'Stock' A  stock or share (also known as a company's "equity") is a financial instrument that represents ownership in a company or corporation and represents a proportionate claim on its assets (what it owns) and earnings (what it generates in profits). Stock ownership implies that the  shareholder  owns a slice of the company equal to the number of shares held as a proportion of the company's total outstanding share
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Steps to consider before starting a stock trading business

The Stock Trader is the person or maybe it can be a company which is involved in trading of equity securities. Basically, the term stock trader is used for that person, who can be an investor, an agent, and stockbroker. Finally, the whole process of this type of trading is known as stock trading. Stock trading is not as simple as its name. That’s why a lot of sites are working on it which provides necessary information about stock trading business like guerilla stock trading . Stock trading basically depend on your skills and abilities to trade securities. Personal interest in this type of business matters most because to do this type of trading you cannot analyze things perfectly unless you do not pay perfect concentration or interest on your trade. To be patient is a requirement in this business because it is the type of business which can lead you towards success but patience is required to analyze the daily stock conditions and sometimes it consumes more time to make you profitabl
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