Articles
Search:

Home | Business



An Introduction To The Stock Market







A stock market is basically both the physical location where stocks are traded as well as the stocks themselves. The combined activity of stocks leads to the ups and downs of the market as a whole. Stock exchange is something entirely different, and refers to a particular company and its stocks.

1. The Stock Exhange

Worldwide, it is possible to buy and sell stocks. The only restriction is the opening hours of each exchange. Both the NYSE and Nasdaq for example operate from 9 - 30 a.m. to 4 - 00 p.m. Eastern Time from Monday to Friday. Other exchanges have similar opening hours based on their local time. The most usual hours are between 9 - 30 AM and 10 - 30 PM.

2. Major Exchange Locations

Japan - Tokyo Stock Exchange
India - Bombay Stock Exchange
Europe - London Stock Exchange
SWX - Swiss Exchange
China - Shanghai Stock Exchange
United States - NYSE, Nasdaq, and Amex

3. Good Stocks Equals Good Economic Health

When the economy is doing well the market is strong. A strong market is sometimes also called a bull market. Bull markets occur during times of high economic production, low unemployment and low inflation. Bear markets, on the other hand, follow downtrends in the economy - inflation and unemployment are rising and stock prices fall.

4. Change Is Good

The stock market is largely controlled by supply and demand. A rise in stock price might cause investors to jump on the bandwagon and thus the price will rise even higher. A falling price might have the same effect, causing investors to jump ship and try and sell all their shares as quickly as possible.

5. FOREX

As the largest in the world, the FOREX market buy one currency against another and individual investors profit from very small changes in value. Most FOREX trades exist only for 24 hours and so traders keep a very close watch on the market to make a profit.

6. The Options Market

The Options Market is similar to the Futures Market in that an option is a contract that gives you the right (but not the obligation) to trade a stock at a certain price before a specified date. This means that if you want to sell but want to hold out a bit longer for a better buyer, you can.

7. Futures

Significantly different from the FOREX market, a Futures Market is where contracts to buy and sell goods at specified prices are traded. Because market conditions make the actual futures contract fluctuate considerably in value, most investors in the futures market are not interested in the actual goods - only in the profit that can be realized in trading the contracts.


Information and Articles: http://www.mastersmba.com

Providing Information on various topics, please browse our other Articles for more informative resources, we house information on every topic imaginable so regardless of your needs you can be assured to find the answer here. If you wish to reprint this on your own website, simply click the "Web Version" in the right menu, and you are presented with a pre-formatted document to use.

A lot of the information is written by the Master Article team, and published exclusively on the MastersMBA.com website, and we do our best to research all information to ensure it's as accurate as possible. However at times we also publish documents given to us by other sources, we do examine these documents to ensure they are as accurate and correct as possible however at times they discuss highly specialized fields making it hard to authenticate the validity of every fact in the document. These are written by specialists in their respective fields, and we do trust their integrity and judgment however it's always a good idea when doing any research to consult a number of sources and form your own conclusion based on a number of view points. Also if you are looking for Google Chrome Extensions you can check out that link.

RSS

You can click the XML Icon Above to Read Business Articles Via RSS!

Design by SEO Info: SEO Forum

Providing Articles on everything from Credit