What is the Stock Market and its functions?

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Website design By BotEap.comA stock exchange or stock market is a center where traders buy and sell shares of companies. Companies want their shares to be listed on the stock market. A large company usually lists its shares on many stock exchanges around the world.

Website design By BotEap.comNow comes the point of what are shares: shares are a small part of a company, when someone buys shares in a company, it means that the buyer owns a small part of that particular company. Stock price based on many different things. The main thing that affects the price of shares is the balance between demand and supply. Let us know how it affects, if so many traders want to buy a share then that share price goes up and if there are more sellers than that share price goes down.

Website design By BotEap.comFunctions of the Stock Market

Website design By BotEap.com• Securities Prices: The stock market provides the platform for obtaining the values ​​of securities based on supply and demand factors. The values ​​are valued higher as there is more demand, in this way the price of the values ​​is determined, the higher the demand, the higher the value of the values. Investors can know the value of their investments as well; stock valuation is very useful.

Website design By BotEap.com• Security of Transactions: Each stock exchange is an organized market and has its own law. Each member must follow the rules, similarly, companies must also follow the strict rules and regulations. This will guarantee the security of selling and buying through the stock market.

Website design By BotEap.com• Contributes to economic growth: the securities of many companies are bought and sold on the stock market, investors can buy securities for profit and can sell in case of need for money. These investment processes encourage investors to invest their money in industries, whereby economic development becomes possible.

Website design By BotEap.com• Spreading the cult of equity: The stock market plays a fundamental role in encouraging investors to invest in property titles. The stock exchange guides investors by providing them with economic updates, usually this information is published, providing investment knowledge and providing best trading practices and much more.

Website design By BotEap.com• Provide margin for speculation: When investors buy shares to earn a profit as a result of changes in the market price of those shares, it is called speculation. Some scope for speculation must be allowed to provide liquidity to securities, the stock market provides this facility.

Website design By BotEap.com• Liquidity: The main function of the stock market is to provide a platform to buy and sell shares and through these investors get the security that they can convert their investment into cash whenever they want. Therefore, investors invest in long-term investments without hesitation because they can convert them into short- and medium-term investments whenever they want.

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