In this series i am going to talk about stock market and how to trade . I don't claim to be a kickass trader .
The other articles on the series might focus heavily on NEPSE.
Primary(IPO) and Secondary
In the primary market, securities are offered to public for subscription for the purpose of raising capital or fund. Secondary market is an equity trading avenue in which already existing/pre- issued securities are traded amongst investors. Secondary market could be either auction or dealer market.
Why do stock prices go down :
A company’s performance is disappointing compared to expectations of the public.
Lots of people want to sell the shares.
Not many people want to buy the shares.
There are too many shares.
Why do stock prices go up:
A company’s performance exceeds expectations of the public.
Lots of people want to buy the shares to reap the rewards of the profits.
Not many people want to sell the shares.
There are not many shares left.
The way i see ot its simple demand and supply . I have 5 pens which are readily available in the market and 3 people want to buy it they have the power over me. I have to decrease my price to sell it.
But if i have 3 pens and 5 people come to buy it from it because no one wants to sell it i have the power . So , i can sell them at whatever price i want.
SOURCES : investopedia, wikipedia, yotrade NEPSE
Pic source :
http://www.ecmoneytips.in/2015/09/share-market-bull-vs-bear.html?m=1
It's short and down to the point, but I think this is only useful for absolute beginners to understand the reasons for the market movement.
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Yes , i would write indepth as i go along
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