Friday, February 1, 2019

Concepts of Stock Market ? Basics

                     Stock market is place where you buy and sell shares of company.The stock market refers to public markets for the issuance, purchase and sale of stocks trading on an exchange or an over-the-counter exchange.
            Stocks, also known as shares, it represent fractional ownership in a company, and the stock market is a place where investors can purchase and sell ownership of such investment assets. An efficient stock market is considered critical for economic development, stock market is enables companies to quickly access public capital.
              *Why Stock Market Is Needed ?
                      There are two very important purposes for the stock market. The first is to capitalize on companies that can be used to finance and expand their businesses.
                lets go to understand that why stock market is needed ? So lets say if they have business and for business to grow they need capital , and some it gets capital from three Different sources Primarily -
              1- Banks - Banks giving them capital in form of loans for business of certain perticular amount . the amount which they have to pay with given interest.
       
              2 - Individual investor - where they buy certain percentage of company .
         
              3 -    But when company needed to create huge amount of capital from thousand of investor in that case the company needs to go publically . to get capital from public they have need to list their company shares on stock markets.

     *What Is Stock Exchange ?
                       The stock exchange is nothing but the exchange where stock brokers and traders can purchase and sell stock, bonds and other securities shares. Many large firms are listed on a stock exchange. This makes the inventory more liquid and attractive for many investors. The exchange may also act as a settlement guarantor.
             Other shares can be traded " over the counter, via a dealer. Some large companies will be listed on more than one exchange in different countries so that international investors can be attracted to them.

     What Is Stock Broker ?
                          The brokers are very important component of stock market. So the brokers is one who provide facility of buy and sell the shares from exchanges or individual investors.
   
      * What is stock market index ? 

                              The price movements in a market or section of a market are recorded in price indices known as stock market indices, many of which are, for example, Nifty, S&P, FTSE and Euronext indices. Such indices are usually weighted by market capitalization, the weights reflecting the stock's contribution to the index. The index components are often examined to include / exclude inventories to reflect the changing business environment.
 
        * What Is Timing Of Stock Market ?
                  Timing is different as per time zone.
             
Stock ExchangeCountryOpening Time (IST)                  ClosingTime
(IST)
Indian Stock ExchangeIndia9:15 AM3:30 PM
Australian Securities ExchangeAustralia5:30 AM11:30 AM
Korea ExchangeSouth Korea5:30 AM11:30 AM
Taiwan Stock ExchangeTaiwan6:30 AM11:00 AM
Hong Kong Stock ExchangeHong Kong6:45 AM1:30 PM
Shanghai Stock ExchangeChina7:00 AM12:30 PM
Shenzhen Stock ExchangeChina7:00 AM12:30 PM
Deutsche BorseGermany12:30 PM2:30 AM
JSE LimitedSouth Africa12:30 PM8:30 PM
EuronextEuropean Union12:30 PM9:00 PM
 SIX Swiss ExchangeSwitzerland1:30 PM10:00 PM


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