How Stock Market Operates

3258 WordsDec 11, 201414 Pages
Ravipas Chaloenchansa Econ 735 Dec 11th 2014 How Stock Market Operates It is easy to understand why many people lose a lot of money when they invest in stock market, because the process of choosing the stock and investing is confusing. Fortunately, the market itself is not as complicated or confusing as people think. To completely understand the stock market and how it operates, will potentially help an investor to make good investment decision. The basic definition of the stock market is the place where anyone can sell and buy shares of the company. The trading begins when the company decides to make shares available for public and what you get when you purchase a stock is a percentage…show more content…
For example, if expected earnings is good, the stock price will be driven up and then sold after earnings announcement because the stock value is believed to have already achieved the maximum point. Investors usually do not receive any of the company’s profit even if they are the shareholders of that company. In some cases, an investor on the big company will be able to receive some of the company’s profits called dividend. However, this does not apply to all companies because they want to obtain their high profits in order to be able to pay for future growth; this is called keeping cash in hand. Some investors have preference over another, some are more interested in receiving dividends than in growth of the company. So the choice of investment will entirely depend on your goals. Science and Technology as Predictors of Stock Performance In this second paragraph, our main focus is on how science, technology and stock performance related are and how science is used as a stock performance’s indicator. To begin, one of the most important objects that I found about technology analysis is to completely understand how investing in stock market or technological change can create economic benefits. However, the research study form Zhen Deng, shows that the relationship between investing in economic performance country and are comparatively insufficient. This paragraph is intended to help readers to understand how

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