Stock Market

The word stock in general defined as supply but in business or financial market it refers the supply of money raised by a company. The money comes from the people who want to invest with a hope that company will make their money grow. The company accumulates capital by selling shares or parts of the company to public. Hence ?stock market? is the market where shares of different companies are bought and sold.

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In any business if any company wants to grow - it needs more investment for infrastructure, machinery and manpower that can help in developing new products. For this the company can take loans from bank but again it has to owe debt. So by issuing stock or selling its share, a company can raise capital without going into debt. Buying stock from a company means owning part of the company and each part is known as share. So those shares are sold in the stock market. The people who buy shares are known as stockholders and those who handle the buying and trading are called stockbrokers. The organization that provides facilities for stockbrokers and stockholders in the trading of company?s stocks and other securities is known as stock exchange. The articles directory on finance presents various articles that can be a great way for understanding various aspects of stock market.

Stock Market

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