Share market introduction
the stock market, is a marketplace where people and institutions buy and sell shares of publicly listed companies. It allows investors to participate in a company's growth and profits, while also helping companies raise capital.
Here are some things to know about the share market:
- The price of a company's shares goes up and down based on what people think about the company's prospects and its competitors. For example, if Company A is making more money than Company B, its shares will be worth more.
- There are many different types of stocks, including common, preferred, large-cap, mid-cap, small-cap, growth, value, and foreign stocks.
- Blue chip stocks are issued by large, well-established companies with a good reputation and a history of strong financial performance. Income stocks offer regular income, usually in the form of dividends, over a period of time. Cyclical stocks are volatile and tend to follow economic trends, while non-cyclical stocks tend to outperform the market during an economic slowdown.
- You can start investing in stocks with a small amount of money through online brokerage platforms. However, small investments can have limited returns and higher risks. Beginners should focus on learning the market and consider starting with more stable investments.
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