Any company which desires to start a new venture will require a capital for it.
If not having the required capital in hand these companies make a public offer, in which they can offer their shares to the investors to generate the required money.
This offer is termed as an IPO (initial public offering) in which the shares of the company are released at a decided price and number.
The number and cost of the shares in the IPO depends mainly on the capital required by the companies for starting this project.
Then these shares enter the secondary market and are available for trading by investors through exchanges like the NYSE (New York Stock Exchange), NASDAQ (National Association of Securities Dealers Automated Quotation) and the TSE (Toronto Stock Exchange).
The price of share mainly depends on its demand and supply in the market.
The more the demand by the investors the higher is the price and more the supply of the share the lower is the market price.
Therefore the demand and supply decides the price of the share in the market.
The trading of shares is done through the exchanges like the NYSE (New York Stock Exchange) or NASDAQ (National Association of Securities Dealers Automated Quotation) and the TSE (Toronto Stock Exchange) where they can be bought and sold.
For starting trading through the exchanges every investor has to first open an investment account with a brokerage firm and even an online account through which he can trade via internet.
* Find and read the quote - Read financial newspapers, magazines and sites and search for companies or any products that appear interesting or catch your eye.
The stocks can be bought through an initial issue or a secondary market.
Institutional and accredited investors get an advantage of getting IPO's than normal investors.
However the secondary market is full of action with more of buying and selling of shares.
This buying and selling happens among the investors in the exchange and the company gets nothing through this transaction.
We have to look at the markets history to clarify ourselves about how does the stock market work.
The flow, swing of the market, history of companies, the corporation and the limited liability company (LLC) should be looked into before buying their shares.
* P/E and the EPS - This gives the ratio of the price to the earning of the share (the earning potential of the share) and the EPS stands for the earning per share for the last quarter.
Stock market can be defined as a source of raising capitals for the company and for the growth of economy.
Sometimes market even faces some wrong practices and naked shorting resulting in unplanned falls.
Thus knowing how does the stock market work becomes a must for new investors.
Having good knowledge and experience in the stock market will surely make you a short term or a long term successful investor.
If not having the required capital in hand these companies make a public offer, in which they can offer their shares to the investors to generate the required money.
This offer is termed as an IPO (initial public offering) in which the shares of the company are released at a decided price and number.
The number and cost of the shares in the IPO depends mainly on the capital required by the companies for starting this project.
Then these shares enter the secondary market and are available for trading by investors through exchanges like the NYSE (New York Stock Exchange), NASDAQ (National Association of Securities Dealers Automated Quotation) and the TSE (Toronto Stock Exchange).
The price of share mainly depends on its demand and supply in the market.
The more the demand by the investors the higher is the price and more the supply of the share the lower is the market price.
Therefore the demand and supply decides the price of the share in the market.
The trading of shares is done through the exchanges like the NYSE (New York Stock Exchange) or NASDAQ (National Association of Securities Dealers Automated Quotation) and the TSE (Toronto Stock Exchange) where they can be bought and sold.
For starting trading through the exchanges every investor has to first open an investment account with a brokerage firm and even an online account through which he can trade via internet.
* Find and read the quote - Read financial newspapers, magazines and sites and search for companies or any products that appear interesting or catch your eye.
The stocks can be bought through an initial issue or a secondary market.
Institutional and accredited investors get an advantage of getting IPO's than normal investors.
However the secondary market is full of action with more of buying and selling of shares.
This buying and selling happens among the investors in the exchange and the company gets nothing through this transaction.
We have to look at the markets history to clarify ourselves about how does the stock market work.
The flow, swing of the market, history of companies, the corporation and the limited liability company (LLC) should be looked into before buying their shares.
* P/E and the EPS - This gives the ratio of the price to the earning of the share (the earning potential of the share) and the EPS stands for the earning per share for the last quarter.
Stock market can be defined as a source of raising capitals for the company and for the growth of economy.
Sometimes market even faces some wrong practices and naked shorting resulting in unplanned falls.
Thus knowing how does the stock market work becomes a must for new investors.
Having good knowledge and experience in the stock market will surely make you a short term or a long term successful investor.