// paste in-between head tags // this to hide post title Srinath's Blog: My post about Stock Market

My post about Stock Market





STOCK MARKET


STOCK MARKET
What is STOCK MARKET?
Buying and Selling of stocks or business is called as Stock Market. Stock is otherwise called as Trade. Shares of a company may
be owned by multiple Shareholders and responsibilities will be shared depending upon the decisions made by C-Level Executives.


Types of STOCK MARKET
  • Equity
  • Commodity
  • Currency
Equity

What is Equity?

Equity means business, this stock market term is used to represent business share, instead of Mentioning any physical properties (cash, gold etc..). Equity specifies how a business could be shared with partners in the business.

Equity = Ownership, Ownership = Signed document on business



Equity = Assets - Liabilities

Who are Shareholders?
The business partners who sign a business are called as "Investors" (or) Shareholders.


Advantage:
  • The person who invested can obtain certain share from actual owner.
  • he/she has complete control over the company.
  • Board of Directors meeting will be conducted, in-order to take (or) make any decisions.
Disadvantage:
  • Price of the Asset may vary at time to time.
  • Complete documentation should be read by the Investors.
  • Sudden leaving from the business is not allowed.
  • he/she should pay compensation for the loss.
Commodity


What is Commodity?
Trading of goods by buyers and sellers. Commodity are said to be known as raw materials.


Ex. Electricity, Oil, Natural gas, Grain, Metals, Agricultural goods.


Commodity is also known as virtual market, that allows sellers to buy and sell goods virtually using Internet.


Types of Commodity


There are two types of Commodities

  1. Hard Commodity - Gold, Silver, Aluminum, Copper, Rubber, Natural Gas and Oil
  2. Soft Commodity - Corn, Wheat, Soybeans and Cotton


Advantage:
  • Provides good outcome during inflation.
  • Good source of investment, that can bring good profit later.
  • Low trading cost.
Disadvantage:
  • Very risky, especially when the market is subject to be volatile.
  • No income at times, only Trade for Trade.
  • Possibilities of Loss is higher.
Currency

Currency is entirely different from Stock Market, Currency is the concept of buying one currency and selling the currency to another currency in the market.
The value of the Currencies may vary from country to country. The value of American Dollar may be greater or lesser in another country. Each and every country as its own value for currency.

Forex
Forex = Foreign+Exchange

Whenever we travel from one country to another, the currency we are using now could not be used in the country that we visit.
In-order to use the currency that we have with us, we have to exchange in the Forex counter in the country that that we are visiting.