Stock market or share market or equity market is the sum up of buyers and sellers shares which denote the ownership of business. The shares which are enlisted on a stock exchange market and the other shares which are traded through a private company. Investors like to buy this kind of share from equity crowdfunding.
Origin of the stock market:
The VOC launched the first stock exchange market in Amsterdam in 1611 in a modern way. But the Dutch East India co. initially launched the equity shares for the public. It can be said that the initial public offering (IPO) came to the market holding this company’s hand. IPO plays a crucial role in today’s stock market.
The purpose of the stock market:
Stock market gives chance to the investors to make profit who buys the share of the company. Even some stocks pay dividends to the investors regularly.
Stock market works for two different purposes. Firstly it gives the company an opportunity to make capital which is the main tool for expanding business on a large scale. By launching shares in the market the company can dodge to incur debt by gaining capital from the market.
Story of stock market players:
Investment banks, investors and stockbrokers are the participating units in the stock market.
Investment banks play a pivotal role in the stock market. It mainly deals with the IPO when a company wants to be enlisted as a publicly traded company by offering shares of stocks. How an IPO works in the stock market is an important topic of discussion. Investment banks act as the “underwriter” for a company who wants to be enlisted. Thereafter after analysing the market evaluates the company’s share value. The main objective of the investment banks is that the offered share in the market is sold at the best price.
The stockbrokers do not work as financial advisors but they buy and sell the company’s shares on behalf of clients who may be institutional investors, individual retail investors. The performance of stockbrokers indirectly helps in flourishing the share market.
The stock brokerage firms hire the equity research analysts. They mainly forecast the fall and rise of the company’s stocks by doing market research.
Stock market Indexes:
The overall performance of the stock market is reflected in the performance of different kinds of stock market indexes. The NASDAQ, FTSE 100, Composite Index, Hang seng index are the examples of stock market indexes.
In today’s world, imagining an economy without a stock market is beyond imagination. Because it helps in growth of the economy but at the same time there is some uncertainty, risks associated with the stock market. For this stock market players should always keep an eye on this market at https://www.webull.com to earn profit and help in growing the economy.