Stock Market Theory

Stock market is an ideal option for the people who want to earn a hefty amount of money in a short time. However, not all the people who invest in stock market would reap profits. There are high chances of losing the hard-earned money, if the right decision is not made while trading. It is crucial for the investors to have extensive knowledge on the stock market and commodities prior to investing in this market. Ideally, the stock market is the place where all the public companies will trade. This is a common place to carry out trading. In the primary market, the companies, especially startups will sell their shares to the public to raise Initial Public Offerings. After the shares are sold in the primary market, then these are traded in the secondary market. In this market, the shares from one investor is sold to the other investor either at the market price or at the price both the investor and seller are ready to trade. Ideally, these stock exchanges are run by the regulatory authorities. This is the platform where both the stock buyers and sellers meet under one roof.