• January 25, 2022

Understanding Stock Market

In this article we are going to understand how the stock market works and how you can take advantage of all that to be able to generate wealth, first of all the stock market is made up of offering and demand for assets these assets can be stocks, options, or also bonds of any government or company etc.

So in the world there are people who want to buy certain assets at a certain price and other people who want to sell the same assets

so this is called the stock market, according to finance professors or theorists on the subject of the market economy Is efficient ; In other words, the market assigns a fair value to an asset, but this could not be more wrong, many have been the large investors who have proclaimed that the market is inefficient and that they take advantage of those inefficiencies in order to generate large sums of money.

Why do companies issue shares?

Companies issue shares to be able to finance their growth in many cases, to be able to have a company and make it grow at gigantic rates they require a lot of money, so a good method for this is to issue shares to have shares at other people’s money ah change these people will own a percentage of the company

How stock prices are set

In many cases, the factor that defines the price of a stock is the same buyers and sellers of the same since in the market there are hundreds of thousands of investors, these by buying a certain asset can make the price rise to itself through the sale of a certain asset can make it go down, all this is done through intermediation platforms.