Stock Market Analysis

Stock market


Stock market or Equity market is a virtual platform where buyers and sellers confabulate and trade on their point of view or with the help of tips. The different opinions of people make up the core of the market. Latest news, updates, trending flashes and the mismatch between demand and supply causes the stock prices to fluctuate on a daily basis. 

To understand more deeply, let’s take an example. Suppose X company is experiencing some issues and its shares have dropped to Rs. 4000 from Rs. 5500. Assume there are two traders: 
T1 and T2.
T1 says: 
The stock prices of X company will go down because there are many internal issues that the company is facing.
Hence, T2 should be a seller of  X company’s stocks.
T2 says:
The stock prices of X company will again go high. Currently, the company is going through internal issues but soon they’ll be resolved.
Hence, T2 should be the buyer of X company’s stocks.
Both the traders will place their orders to sell and buy stocks respectively via stock brokers who are responsible for routing the orders to stock exchange. Stock exchange ensures the trade is being executed smoothly.
Thus, we conclude that the primary goal of stock market is to create a virtual market place for trading.

Comments

Popular posts from this blog

Closing Update of Indian Share Market of 3 December'2018

Morning Update of Indian Share Market- 5 December 2018

6 December 2018- Morning Update