Understanding How the Stock Market Works
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Understanding how the stock market works is essential for making informed investment decisions. Knowledge of market operations, key players, and trading strategies can help mitigate risks and maximize returns. Explore the intricacies of the stock market, where companies issue shares that investors buy and sell through exchanges. Discover how factors such as company performance, market sentiment, and economic trends influence stock prices, providing opportunities for both long-term investors and active traders to participate in this dynamic financial ecosystem. 1. Basic Concepts Stocks (Shares) : Represent ownership in a company. When you buy a stock, you own a piece of that company. Stock Exchange : A marketplace where stocks are traded. Major exchanges include the New York Stock Exchange (NYSE) and the NASDAQ. Investors : Individuals or entities who buy and sell stocks to make a profit. 2. How Stocks market works Initial Public Offering (IPO) : When a company first sells shares ...