The Stock Market
The stock market is a market where stocks and shares are bought and sold. When you buy the stock of a company, it means that you are also a part owner of the company. A stock represents a certain percentage or portion of a company. When you buy the stock of a company, it means that you are buying a portion of a company. Buying the stock of a company gives an individual the right to indicate how a company will run. In addition to this, a stock investor is entitled to recieve a certain amount of money at the end of the year.
The main reason why individuals buy stock is to make gain. individuals/investors buy stocks in anticipation that a company will grow in future. When a company grow, the value of the company’s share will also grow and the money of the investor will also grow.
On the other hand, if the company fails, investors will lose their investment. Stock investment is all about risk. You may gain and you may lose.
Why do Companies issue stocks? Companies normally issue stocks to raise capital. When a company want to expand its business, it goes to the Capital Market (Stock Market) to raise fund.