Share Market

The Share Market, also known as the Stock Market is a platform where the users can buy or sell parts of a listed company. A Corporation often lists itself in the Stock Market when it wants to sell a part of its ownership to Individuals worldwide. This listing often happens when a company or organization is scarce in funding and resources. When the company shares are bought by individual people, the founder of that Company gets to run his business smoothly without any scarcity of funds and resources. This is the simplest concept of the Stock Market. There are various factors that determine whether people will buy the shares of that organization or not. They are mostly valued by the Share Price, Reputation, Condition, and sustainability of the enterprise. When the price of a share goes up, it means that people trust the organization. When it goes down, it means that there is something wrong with it either economically or Commercially. The owner of stock can either face profit or loss from these shares. If the price of a stock goes up, it means that a person who possesses this stock gets profited.

On the other hand, If the stocks go down, it means that the person who possesses the corresponding stock will face some loss. The prices of the stocks are proportional to the performance of the company in the Economy

The Stock market concept first revolved around India and Europe. Dutch East India Company was the first-ever organization to start the Stock Market ideology. This happened in the late 1600s when Dutch companies in India and Europe were suffering financially. Most of them were planning to give up. Some of them sold their Enterprises to Local Kings and fled back to Europe. But the Dutch East India Company was not ready to give up. Hence, they introduced the concept of Share market or Stock Market. They sold a small part of their companies to other Companies in Netherland and slowly began to give these shares to normal working people too. This was a Billion Dollar idea that gave huge boost in their career. This idea was so successful that Foreign companies in India began to sell a large part of the shares to countries of Europe like France, Germany, Finland, Spain, and much more instead of just their country. Slowly this made its way to Britain. As the volume of the shares increased, People needed a steady marketplace to buy and sell these stocks. Hence, the first Stock Market Exchange Organization was established – The London Stock Exchange.

Slowly, this idea began spreading over the growing American Colony which eventually Established its own Multi-Billion Stock Exchange called New York Stock Exchange. It is now the world’s biggest stock managing Enterprises with a turnover of $20 Trillion.

Some of the other stock Exchange are as follows:
• Kuala Lumpur Stock Exchange
• Shanghai Stock Exchange
• Stock Exchange of Hong Kong
• Frankfurt Stock Exchange
• Italian Stock Exchange
• Korea Exchange
• Indonesia Exchange
• Taiwan Stock Exchange

India currently has its own stock Exchange in Mumbai called the Bombay Stock Exchange established in 1875 with a market capitalization of $2 Trillion and 5439 listed companies. National Stock Exchange of India is also another leading Stock Exchange Establishment built-in 1992 with a $2.2 Trillion turnovers.

Unlike earlier times, Nowadays Trading Applications are used instead of Manual stock transactions.
Some of the Trading applications are as follows:

Zerodha, Upstox, Groww

 
Billionaires like Elon Musk, Bill Gates, Warren Buffet, and Jeff Bezos have already invested in a wide variety of companies. They buy Millions of stocks at Corporate levels. According to reports, 84% of the U.S stocks are owned by Corporate Giants and the wealthiest 10% of the USA. That makes only 16% accessible to crowds.

There are also studies related to Stock Market and Management which is in High scope. They manage the orders of clients and deliver the stocks to them within the initiated time period. MBA in Capital Market is a related study associated with the Share market.

With huge Profit margins, Losses arise too. When terrorist attacks, Economy inflations, Wars occur, Investors and Working citizens begin selling their stocks which leads to the crashing of the Stock Market also known as Market Crashes. One of the recent Market Crash in India was on 23rd March 2020 due to the COVID-19 situation.

Hoping for a better Economy because:
As Economy Grows, The Stock Market grows.

BY

ABHIRAM MANU