How the Stock Market Works

In this article, I will tell you how the stock market works. It works on the rules of demand and supply. When there are less sellers and more buyers in the market, the market price is higher. Similarly, if there are more sellers and less buyers, then the market price is higher. So the market price falls which means there is more supply

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 In this article I will talk about 5 topics about stock market. 

Artical points 

1.Where Is the Stock Market? 

2.What Is a Stock Market Index?

3. Reasons to Invest in Market

4.Risks of Stock Market Investing 

5.How to Invest in the Stock Market

#1.Where Is the Stock Market? 

If I talk about the whole world, then in my view there are two markets which are the biggest markets in the whole world. One is New York Stock Exchange (NYSE)-USA and the other is NASDAQ-USA. Trillions of dollars are exchanged between these two markets. The market cap of these two markets is worth trillion dollars, according to the 2018 report of NYSE. Market cap as of $28.5 trillion and NASDAQ's market cap as $9.8 trillion

(1#).   About NASDAQ

 This is America's largest stock exchange

 •   # It includes listed companies like Apple, Microsoft, Amazon, and Google etc.

 •     #Major indices like NASDAQ Composit And NASDAQ-100 are its main indices.

(2#).   There are two main ways to trade on the NYSE

On the physical trading floor and through electronic systems. The trading floor of the NYSE is famous for its trading floor brokers, who execute orders to buy and sell shares of companies.

    The NYSE's indices include well-known indices such as the Dow Jones Industrial Average (DJIA) and the S&P 500, which reflect the health of the US economy and the performance of companies

#2.What Is a Stock Market Index?

. A stock market index is a statistical source that measures the performance of a particular part of the stock market or the entire market. It helps investors and financial managers to find out the state of the market and compare the returns on specific investments

• some example of index

     FTSE-100

 

     Dow Jones industrial average

     Nasdaq Compsite

     S&P 500

• Type of index

    market cap based index

    Sectors based index

    Broad market index

3. Reasons to Invest in Market?

         There may be many reasons for investing in share bazar, from which some reason is below

• Solving future problems by investing in        stock market 

• You can earn returns by investing in stock     market 

• You get tax benefits by investing in the           stock market.

 • By purchasing shares in the stock market,     you get a stake in the company. As the           company grows, your company stake also     increases.

#4.Risks of Stock Market Investing

• There can be some risks in investing in the stock market. Here I am giving information about some risks.

 •There are continuous changes in the stock market like recession, change in interest rates, loss caused by terrorist attacks, etc.

 •There are constant changes in the stock market and there are many changes in its price, which means the market is unstable. 

 •When there is a rule or some change in the politics of a country, then a decline in market prices is seen.

#5.How to Invest in the Stock Market

•Let me tell you that before investing in the stock market, you have to have a right mental condition. Here are some steps of investing. 

 1.Before investing in share market you must have a good demat account. 

 2.This demat account is available to you through mobile-based application or web platform

  3. Before investing in stock market, you should get information about the company and choose its stock in which you want to invest.

•.   If you got some information in this article then please comment and also tell how you liked it. Bbb