An Overview About the Stock Market

Whenever we heard the words "Stock Market", we commonly relate it with gambling. But a major difference between gambling and the stock market is that the market is a type of investment whereas gambling is equal to betting on something. In March 18, 1817, the stock market comes into existence that change the scenario of trading. That time only rich people invest their money in this market and purchase shares of the companies. As the time passes, people come to know about its merits and demerits.

Now, people know that the stock market is not only for rich and affluent people. An ordinary man can also invest in it. In recent times, shares of the banks, insurance companies, retail investors and a lot of more are available in this market. To make the economy strong, the stock market of a country must be little variant or stable. Due to this, the companies of a country raise their capital. People buy these shares in huge amount and sell them when the prices are high. The profit and loss of stocks may within a minute, hour, day, week and even years. So, there are multiple type of trading is done.

One of the stock trading type is Day trading. This can be done for several minutes to hours within a day. Before the closing of this market in the evening, stocks of the company must sell. This can lead to a profit or loss. In Medium-term trading, stocks can be held for a few weeks or months. For this type of trading, a stock trader must be predictable. High prediction with professional skills is mandatory for long-term trading. People invest money in a company for several years and generate a huge profit on it.

This market is not always provides a profit. A stock market crash can result in loss of money in large amount. The economy of the country affects a lot due to this crash. It can make you wealthier as well as poorer. So, before investing in the stock market, get some knowledge about this market, company details, profit possibility and much more factors.

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