A stock market is also known as the share market or equity market. It is the grouping of buyers and sellers of shares. They become the owner of the business in which they invest their money. Electronic trading platforms and stock brokerage is the medium through which investment is done. A share is a small unit that represents your part in a company. Becoming a part of a company is also good or bad for you. The good thing is that when a company gains profit and increasing growth daily, then the price of your share will also increase, and you gain more profit too. As we knew the future is uncertain, it can be good or bad. If you look at the Bad side, then you will notice that if the company loses its profits than its share price will go down. Ultimately, it will affect you.
Many stock exchanges are working in different countries. Every country has its stock exchange, where good companies are listed like Nasdaq amzn at https://www.webull.com/quote/nasdaq-amzn . NASDAQ is the stock exchange in America. It comes on the second-ranking in all. Amazon is listed in NASDAQ.
Demat Account And Trading Account
If you want to transact in the stock market, then you will need a trading account and Demat account. The trading account helps do trade means buying and selling shares in the stock market. When you buy stocks then your trading account will be debited. In the same manner, when you sell shares, then the same amount will be converted to your trading account. At the time of buying shares, you need a Demat account which acts as a digital wallet. In the wallet, all your shares are stored. In conclusion, a trading account is used to transact money, and a Demat account is used to store shares.
Purpose Of The Stock Market
The stock market has two major objectives. Firstly, it provides capital to the firms that they can use to increase their business. Secondly, it provides investors with the company. Investors will buy stocks and get an opportunity to get a share from the profit in public companies that are trading. Investors get profit in two ways. Firstly, some stocks have a nature that they pay regular dividends. Secondly, some stocks are purchased to sell on profit. They can sell their shares only when the stock price rises from the purchase price.
Stock Market Indexes
The performance of the stock market is shown in the stock market indexes. Stock market indexes are also exited in the form of options and stocks. If you are new in this field, you need know how to invest in stocks online first.