Deep Blue Publications Group: What Is The Stock Market?
The
stock market is an online trader.
Centers of finance, such as London and New York, have their
own stock exchanges – that is, their own retail shops or venues where
investors, whether they are private individuals or banks or pension and hedge
funds, can purchase and sell shares of stock.
Remember: One share is a part-ownership of a company.
At present, stocks and shares can be more commonly acquired
on the Internet through a stockbrokers' website, in the same way that Amazon
conducts sales through its website.
You can acquire or sell shares in businesses from the US,
UK, Europe, India, Japan and other nations over the stockbroker's website.
The
Stock Market – The Traditional View
When people mention the stock market, they often refer to
the stock exchange (retail outlet) in their own country. For instance, my stock
market is the London Stock Exchange.
Through my stockbroker's website, I gain access to exchanges
globally and buy and sell shares on the London Stock Exchange as well as The
New York Stock Exchange, The NASDAQ and The American Stock Exchange.
Like Amazon, a stock market is a venue where buying and
selling takes place but the only goods available offers are shares.
As you can see in particular, the stock market and stock
exchanges are retail shops for the acquiring and trading shares.
How You
Can Profit From the Stock Market
Customarily, people earn from the stock market through their
membership of a pension plan either privately or through a company they work
for. In the US, this is traditionally done through the 401(k).
At times, people will invest money into mutual funds to make
money off the stock market and assign somebody else do the job of selecting
stocks. The advantages of stock picking by mutual fund managers have not been
that commendatory.
And this is not merely a phenomenon that occurs in the US.
The UK pension industry has been often criticized for making
profit, not from the stock market, but from the fees they charge their clients.
The only way to earn from the stock market is to take
ownership and control of your involvement in it. Allowing others to do it for
you will lead to an erosion of the wealth you have worked so hard to create.
What Is The Stock Market? The Real Answer Deep Blue
Publications Group LLC
Deep Blue
Publications Group LLC provides the investor the potential to earn from the
folly of other stock market players. In short, stock market is basically
composed of the participants in it, such as private persons and institutions
like hedge funds, pension funds, banks and mutual funds, who acquire and sell
shares.
The stock market, ultimately, is not the millions of
share-price figures flashing across the display monitors of day traders.
The "folly of others" simply refers to the stock
markets' strange capacity to drive up and shrink the values of companies – they
undervalue and overvalue them.
You can
earn from their folly by:
·
Purchasing shares in businesses when they are
undervalued and;
·
Selling them when they reach their full value
and
·
Keep away from the stock market when and if they
are overvalued.
·
This is entirely in contrast to the gamblers
mentality of attempting to buy in bear markets and attempting to sell in bull
markets.