Definition of equity market :
An equity market is market in which shares are issued and traded,either through exchange or over-the-counter markets. Also known as the stock market,it is one of the most vital areas of a market,it is one of the most vital areas of a market economy.
Breakdown Equity Market:
Equity market are the meeting point for buyers and sellers of stocks.
The securities traded in the equity market can be public stock, which are those listed on stock exchange, or privately traded stocks. Often, private stocks are traded through dealers, which is the definition of an over-the-counter market.
Trading in the Equity market :
In the equity market,investors bid for stocks by offering a certain price,and sellers ask for a specific price. When these two prices match. a sale occurs, the first investors bidding on the same stock. When this occurs, the first to get the stock. When a buyer will pay any price for stock, he or she is buying at market value similarly, when a seller will take any Price for the stock, he or she is selling at market value .Companies sell stocks in order to get capital to grow their business. When a company offers stocks on the market,it means the company is publicly traded, and each stock represent a piece of ownership. This appeals to investors,and when does well, it's investors are rewarded as the value of their stock rise.
The risk comes when a company is not doing well, and its stock value may fall. Stock can be bought and sold easily and quickly, and the activity surrounding a certain stock impact its value.
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