Stock market is certainly the mysterious and the most obscure subject to learn .some try to learn the ropes of stocks and invest in them but multitude without even giving a try to learn the basics they jump into and buy shares which is simply flogging a dead horse .Atlest once in a lifetime every individual will be attracted towards stocks and they will just give a try to make money if they are successful in this they will praise the market and if they fail they will simply blame market and simply labell it as 'gambling' .In a nutshell getting attracted to mystery market is inevitable.
My love for the mystery market took a stage in 2018 january when i was detained by the college officials in which i was studying.
Now, let me get the rudimentary information straight.
WHAT THE HELL ARE THOSE TWO ANIMALS????
The bull(buyers) market indicates that the market is in a appreciating mode whereas bear(sellers) market indicates that the market is in a depriciating mode.
WHY DOES STOCK PRICES FLUCTUATE?????
The stock prices changes everyday by market forces.By this we mean the share prices change because of demand and supply.Simply if more people want to buy a particular stock than sell it then the stock price appreciates.Conversely,when more people want to sell a stock than buying it then stock prices depriciates.
Comprehending supply and demand is easy what makes an individual to like a stock and dislike another stock.This comes down figuring out what is the positive news and negavtive news of the company.
That being said,the principle theory is that the price movement of a stock indicates what investors feels about the company.Never ever equate a company's value with the stock price.
WHAT &HOW TO CALCULATE MARKET CAPTILIZATION OF A COMPANY????
It is simply the value of a company.The market captilization can be calculated by multiplying the total outstanding shares with the current market price
For instance:a company that trades Rs 100 per share and has 1,00,000 shares outstanding has a lesser value than the company that trades at Rs 50 per share and has 5,00,000 shares outstanding (i.e
100*1,00,000=100,000,000 while 50*5,00,000=250,000,000)
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