SHARETIPSINFO >> Articles Directory >> Factors influencing price of a stock in Indian stock market
It is inherent in every human being to want to earn something for every thing that we do. We do not believe in doing any work or thing without a good income in return. The stock market is a very complex place. A number of dealings take place in there every moment. It is hence very difficult for a layman to get a hang of where he should invest. It is very easy for normal people like you and me to get cheated in the share market. Since we are, of course not really adapt or knowledgeable about the workings of the stock market it would be very easy for someone to cheat is investing in a foiling company or much worse loot us off all our money. The money that we had earned through so much hard work and labor should not go waste. It is hence, always advisable for us to get help from stock market intermediaries like brokers, agents and in some cases even banks. So, an investor must have proper knowledge on the factors influencing price of a stock.
What really is a stock market?
Many of us might think what a stock market is really? Well, a stock market is nothing but just a place where the buying and selling of securities take place. Investing in the stock market is the wisest thing that can be done by any individual. Investors should make him well aware of the fact that a lot of risk is an uncertain place. It is also a very volatile market it gets affected by sorts of forces one can ever imagine. The prices of shares can rise up or go down sharply in a sudden and within a very short span of time. And not just shares, other kinds of securities such as debentures, bonds, mutual funds and so on are also affected in the same way as shares. Stock market is a very good option to make our investments in. If a person is the high income earning group then investing in the stock market may prove to be a very profitable venture as the risk taking capability of a high income earning person is much more than others. And, it must be warned that investing in the stock market may be actually being a very risky venture. A person should think properly before investing in the stock market.
Buying and selling of securities
The stock market is the place where the transactions relating to the buying and selling of securities take place. These securities may be shares, stocks, debentures, and the list goes on. Investment for starters is some of money that we can put in a bank in the farm of deposit or spend the money in buying securities issued by a company or any other financial institution. A large number of securities are bought and sold every minute in the online stock market. As such a lot of parties work together in a stock market every day. A stock exchange is the only place where securities are brought and sold. But that does not mean that securities can also be traded with the help of banks. Banks provide these facilities, which enable a person to buy and sell securities without stepping in the stock market.
The investor must wisely take the decision of buying and selling of stocks.
It is very easy to get cheated in the securities market. That is why we need proper education and knowledge about the ways of this market. There are many factors influencing price of a stock. We need to find out in which instruments to invest in, as there are a lot of investment opportunities in the market. Also we need to be careful about the rise and fall of stock market prices if we are investing in the stock market. There are money brokers out there in the market who helps out people in the stock market by giving them advise when to invest and when not to. A real broker must be registered by the SEBI. A brokers works for a fee and is bound by rules imposed by the SEBI
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