Stock Exchange
A stock exchange or stock market is a center where traders buy and sell shares of companies. Companies want to get their stock listed on the stock exchange. A big company usually has its stock listed on many exchanges across the world. You can contact us at 1-772-283-5152 for more info about stock exchange and dinar.
Now the point comes that what are the shares: Shares are a small part of a company when someone buys shares in a company it means buyer owns a small piece of that particular company. The price of shares based on many different things. The main thing that affects the price of shares is the balance sheet between demand and supply. Let us know how it affects, if so many traders want to buy a stock then the price of that share goes high and if there are more sellers than the price of that share goes down.
• Providing Scope for Speculation: When investors buy shares to get a profit, as a result, the changes in market price of that shares called speculation. Some scope of speculation must be allowed in order to provide liquidity to securities, share market provides this facility.
• Liquidity: The main function of the stock market is to provide a platform for buying and selling shares and through these investors get an assurance that they can convert their investment into cash whenever they want. So, investors invest in long-term investment without any hesitation because they can convert it into short term and medium term whenever they want.
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