![\"how](\"https:\/\/i0.wp.com\/i.ytimg.com\/vi\/LKpupMSYCko\/hqdefault.jpg?w=253&ssl=1\")
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This offering is known as the primary market https:\/\/www.ma-bise.com\/education\/what-you-should-do-to-find-out-about-learn-day\/<\/a> for investors and once the shares are sold they will begin trading publicly on a stock exchange, as the secondary market. First, you can purchase and own the shares of a particular company on the stock exchange where they are traded. These would serve as a long-term investment.<\/p>\n On the flip side, when people are feeling confident and optimistic about the economy, they tend to buy stock. The stock market also creates and maintains what are called indexes. A securities market index indicates the performance of the stock market.<\/p>\n Once the company’s shares are listed on a stock exchange and trading in it commences, the price of these shares will fluctuate\u00a0as investors and traders assess and reassess their intrinsic value. There are many different ratios and metrics that can be used to value stocks, of which the single-most popular measure is probably the Price\/Earnings (or PE) ratio. The stock analysis also tends to fall into one of two camps \u2013 fundamental analysis, or technical analysis.<\/p>\n The performance of an individual stock also is influenced by what’s going on in the overall stock market, whether the market is in a rally or a sell-off. These are known as bull and bear markets.<\/p>\n Typically you’d have only two ways to raise money to expand the business. You could take out a loan, but that accrues interest.<\/p>\n When you hear a company going public, that means it\u2019s launching into the stock market. It does http:\/\/docegatos.com\/the-undeniable-truth-about-metatrader-4-download\/<\/a> what\u2019s called an initial public offering (IPO). The company that\u2019s going public, along with an underwriter that\u2019s an investment bank, will make a certain number of shares available for a certain price.For instance, when Beyond Meat (stock symbol BYND) went public in early May 2019, it was priced at $25 a metatrader4<\/a> share with an implied market valuation of $1.46 billion.<\/p>\n On the other side of the equation, many investors have become wealthy by searching for undervalued stocks, often trading below the price to earnings levels of similar stocks \u2014 but not always. If you wanted to buy a stock at $10, you can place the order with your broker to buy a fixed number of shares at that price. However, if nobody is willing to sell for that http:\/\/www.eattwo.com\/2019\/11\/kids-work-and-metatrader-4-download\/<\/a> price, the trade won\u2019t be executed.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" The Stock Market and How it Works It’s done electronically, so trades happen in split seconds. The stock market also offers a fascinating example of the\u00a0laws […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[543],"tags":[],"_links":{"self":[{"href":"http:\/\/oceanclean.co.uk\/wp-json\/wp\/v2\/posts\/5482"}],"collection":[{"href":"http:\/\/oceanclean.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/oceanclean.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/oceanclean.co.uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/oceanclean.co.uk\/wp-json\/wp\/v2\/comments?post=5482"}],"version-history":[{"count":3,"href":"http:\/\/oceanclean.co.uk\/wp-json\/wp\/v2\/posts\/5482\/revisions"}],"predecessor-version":[{"id":11284,"href":"http:\/\/oceanclean.co.uk\/wp-json\/wp\/v2\/posts\/5482\/revisions\/11284"}],"wp:attachment":[{"href":"http:\/\/oceanclean.co.uk\/wp-json\/wp\/v2\/media?parent=5482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/oceanclean.co.uk\/wp-json\/wp\/v2\/categories?post=5482"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/oceanclean.co.uk\/wp-json\/wp\/v2\/tags?post=5482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Common Stock<\/h2>\n
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Definition of ‘Stock’<\/h3>\n
Why do we need the stock market?<\/h2>\n