A to evaluate the value of stock

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 A stock market is a place where the shares are bought and sold. These are the markets where the companies float their shares and either initially or subsequently. When a company for the first time issues the share in the stock market it is known as the IPO or the initial public offer. In the stock market other forms of equities and bonds. The stock market is one of the main components of the free market economy. This is the prime market for the companies to gain access to large amounts of cash. The stock market can be divided into two portions; these are the primary markets and the secondary markets. In the primary market the IPO are conducted and the shares are offered to the general public and institutional investors and investment banks. In the secondary market the stocks are then traded between people and institutions. The term market capitalization refers to the value of the all the shares that are on the market. The number of shares that have been issued and their value in total is called the market capitalization. The market capitalization is the measure of how to evaluate the value of stock exchange. This value is compared to evaluate the stock market. The New York stock exchange and the NASDAQ are the greatest in the world by market capitalization. Outside US there are various large market capitalized stock exchanges and one of the largest is the JEG or the Japan Exchange Group and is the biggest exchange in the world outside US. There are various high value companies listed on this exchange and is also the main determinant of the Asia in terms of stock as other Asian stock exchanges performance relates to the performance of the JEG. These rankings keep on changing and there are other stock exchanges that exchange places such as the London Stock Exchange so year on year basis the list of the stock exchanges varies between the outside of US stock exchange list. The stock market in current time is the most important constituent of the economy and there are various contribution it makes to the economy. It is the continuous market for securities and it clearly indicates the performance of the companies and the market conditions and the economic conditions of the country. It is also the hub of investors who try to secure their investment by investing in the companies that are stable and growing. This gives eligibility to those investors that have small amount of investment and cannot afford to make big investments. The stock market has another function that it encourages healthy speculation and there are various attracts foreign investors to invest in the market. Stock market also provides a market for the accumulation of funds. It also protects investors and there are various regulations that are made and effective in the stock market and these are implemented for the benefit of the investors. It also helps in bringing the capital to the market and organizations are give benefit to raise funds and grow their businesses and this helps in the economy by reducing unemployment and growing of business and the increase of exports of products and services. It also offers liquidity to the investors as the investments are readily convertible to cash and the investors can easily enter and exit the market. There are many types of strategies that investors adopt and perform in the market. The trading in recent times has increased as there is an increased use of technology and there are more options that are available such as online trading and most of the investors perform their investments on routinely basis. The traits that are observed in the investors are common and these include the intelligence of the investor. The investor should have the ability to collect and analyze that the conflicting data that is available and the investor should be able to make a decision on that data that will be profitable for the investor. The confidence that the investor has in the decision that he has made. Humility is another trait that is being observed by the investor and despite the conditions that are against his investment and that he should learn from experience and should not repeat mistakes. The effort that is required in making a decision and patience that is required and it requires patience and a standpoint for the investor to be firm and learn the skills. There are general traders and they do not have a certain investment strategy and they perform investments based on the trends and the moves the market experiences on average basis. This is then translated into a pattern and they select their investments based on these averages and they invest in those stocks that move with the market. (Tobey, 2015) 

Categories: Strategy


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