Share Market Talk with Sanjog Koirala 2024
Published on 2024-01-05
"Share market" is often used interchangeably with the stock market. The stock market is a platform where buyers and sellers come together to trade shares of publicly listed companies. The share market operates through stock exchanges, which are centralized platforms where buyers and sellers can execute trades. Examples of major stock exchanges include the New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange (LSE), and Tokyo Stock Exchange (TSE). When you buy a share of a company, you are essentially buying a small ownership stake in that company. Shares are also referred to as stocks or equities. Individuals and institutional investors, such as mutual funds, pension funds, and hedge funds, participate in the share market to buy and sell stocks. Investors aim to make a profit by selling stocks at a higher price than the purchase price. Stock indices, such as the S&P 500, Dow Jones Industrial Average, and FTSE 100, are used to track the performance of a group of stocks. They provide a snapshot of the overall market or specific sectors. A bull market is characterized by rising stock prices, while a bear market is marked by falling prices. These terms are often used to describe the overall trend of the market. Various factors impact stock prices, including company performance, economic indicators, geopolitical events, and investor sentiment. Investors typically use brokerage firms to facilitate their transactions in the share market. Online brokerages have become popular for providing easy access to trading platforms. While the share market can offer the potential for significant returns, it also involves risks. Prices can be volatile, and the value of investments can fluctuate based on market conditions. Investors can adopt different strategies, such as long-term investing, where they hold stocks for an extended period, or short-term trading, where they aim to capitalize on short-term price movements.
Keep in mind that past performance is not indicative of future results, and investing always involves some level of risk.