SHARETIPSINFO >> Articles Directory >>Bottoms up in the stock market and its importance

 

It is very easy for normal people like you and me to get cheated in the stock market. Since we are, of course not really adapt or knowledgeable about the workings of the stock market it would be very easy for someone to cheat is investing in a foiling company or much worse loot us off all our money. The money that we had earned through so much hard work and labor. It is hence, always advisable for us to get help from stock market intermediaries like brokers, agents and in some cases even banks. There are many business firms out there in the market, which are totally fake. But these firms have fake documents, which are enough to fool, or cheat people who are not so well versed with the market and its rules and requirements. There are even company’s who although are not listed in the stock market pretend to do so. We should always try to save ourselves from such fake companies; hence some extra care is always welcome. We should always have our bottoms up in the stock market.

About globalization
Globalization has brought about a lot of changes in the world. Nowadays, whatever happens in a small area can have a director indirect effect on the entire World Economy. The markets have become more and more global. Every sector is influenced by the other, if one sector is hit there is plenty of chance that the other sectors even which are remotely related to the hit sector will be affected big or small time. Such a reaction cannot be avoided in the present world market. And again the investors have to be extra careful for this reason too. But what exactly is a market. Well, the answer is that a market is basically a place well the buying and selling of goods and services take place within a period of time. A market could deal with any item under the sun. Be it grocery goods, factory goods like machines, raw materials and so on and even services. The market where securities are brought and sold and are dealt with is known as the stock market. Share market deals with the transactions relating to the buying and selling of shares.

A person should think properly before investing in the stock market although it is a very good place to invest our extra income.

The stock market is the place where the transactions relating to the buying and selling of securities take place. These securities may be shares, stocks, debentures, bonds and the list goes on. For a company to be able to sell its securities to the public and raise money, it has to be listed in the stock market. Only then can people be sure of investing in the company’s shares. The prices of the securities go up and down very often. Their values are never constant. Sudden rise and fall of stock market price are a common phenomenon.

About stocks
But again what exactly is a stock? Well, a stock is simply a set of shares, which have been put together in a group. A set of fully paid up shares make a stock. A stock is of course, always expressed in terms of money but never are they mentioned in numbers. A stock can be split up into any fractions of any amount. But one thing must be kept in mind that no matter what there can be a set of partly paid up shares, which could make a stock. A stock always has to be fully paid up. The share market on the other hand deals with the transactions relating solely to shares. An investor is in general a layman to when he tries to invest in the securities market. But it is still very vital for him to at least understand a bit about all the securities. There are people who you can really trust and assure yourself that they would not even off with your money. It is the brokers and agents who work at the stock exchange itself. Who exactly are these brokers and agents? Well, they are people who act as intermediaries between the issuer company and the investor. However, we cannot and should not trust just any broker or agents that we come across. They have there bottoms up in the stock market.

 

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