The share market, also known as the stock market, is a platform where publicly traded companies list their shares for sale to investors. Investors can buy and sell these shares through a broker or online trading platform, hoping to make a profit.
Here are some key concepts to understand how the share market works:
Stock exchanges: The stock market operates through stock exchanges like the New York Stock Exchange (NYSE) and NASDAQ. Companies list their shares on these exchanges, and investors can buy or sell them.
Buying and selling shares: When you buy shares, you own a portion of the company and can profit from its growth. When you sell shares, you give up ownership and may profit or lose depending on the market value.
Stock prices: The price of a share is determined by supply and demand. If there are more buyers than sellers, the price goes up, and vice versa.
Market indexes: These are measures of the stock market's overall performance. Examples include the Dow Jones Industrial Average (DJIA) and the S&P 500.
Market trends: The stock market can be affected by economic and political events, company news, and investor sentiment. It's important to keep up with these trends to make informed investment decisions.
Investing in the share market can be risky, and it's important to do your research and understand the potential risks and rewards before investing. Seeking the advice of a financial advisor can also be helpful in making informed decisions.
