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Showing posts from January, 2024

basic understanding of stock market

  Here's a basic understanding of the stock market: A. What is it? The stock market is a network of exchanges where investors buy and sell shares of ownership (stocks) in publicly traded companies. Think of it as a giant marketplace where companies raise money by selling ownership stakes, and investors buy those stakes hoping they'll increase in value. B. Key players: Companies: They issue shares to raise capital for growth and operations. Investors: Individuals or institutions buying and selling shares. Stock exchanges: Platforms like the NYSE or Nasdaq where shares are traded. Brokers and advisors: Help investors buy and sell shares. C. How it works: Companies publicly sell shares through an initial public offering (IPO) . Investors buy shares hoping they'll rise in price, allowing them to sell for a profit (capital gains). The price of a stock fluctuates based on supply and demand, influenced by company performance, economic factors, and market