Mark Kratter

Investing in Stocks: An Essential Investment Guide For Beginners To Learn The Basics Of Trading In The Stock Market Mark Kratter

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A stock is basically a share of the company. A share refers to a part of the company, including its finances and every other asset that it owns. When the company decides to go public with its shares, it announces an IPO or initial public offering. Anybody interested in buying the shares will then approach the company and pay the share value to own the shares. This is known as primary selling. These shares are then sold in the share market. The share market is a huge place where buyers and sellers converge to conduct daily trade. These shares are then bought and sold, and the seller capitalizes on the current price of the share, which will be much higher than what he had bought it at. The buyer will have the chance to capitalize on the share once its value rises.



Companies decide to go public with their shares due to many reasons. But the main reason is to raise capital for their business. So, they will value their company and split the shares. They will then value individual shares depending on their market capture and asset to liability ratio. A small company might capture a big market share, and a big company might capture a small share. It depends on the individual company's board members' decision.



The stock market is huge, and there are many companies that list their shares. As an investor, you must choose the best one for yourself and invest wisely.



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