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Market Analysis : Stock Market Essay

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Introduction

Stock Market
A stock is a unit of ownership within a company and is known as a form of investment, it is important to understand what a stock is to be able to understand that the stock market in its simplest form is a platform where investors buy stocks and bonds as well as sell them. (Also known as trades.) Investors will usually hire a stockbroker who will make purchases of stock on behalf of their customers’ requests and offer their professional advice. ‘Investors who hold their stock for a minimum of 15 years are more likely to succeed in the market.’ (Global Finance Journal Index Volume 14, 2003,) Stocks are long-term investments. But there are no guarantees of any profit return and often losses can occur. Companies often sell stock to raise money to;
• Research and design better ways to make their products
• Create new products
• Have their existing products improved or altered
• Increase their amount of employees When an investor purchases stock, they become a shareholder which means they have ownership of “part" of the company. If the company 's profits rise, you are entitled to share in those profits. This also works the other way around. Should an investor sell their stock when the current price is lower than what they paid for it, then they would make a loss. ‘The stock market is always volatile, from the moment it opens each day to the moment it closes, companies can expect sharp rises and sheer drops in their stock price in a matter of

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