Stock market

Stock marketBy Cam Tu, Kasia, Jia Jing1

2What is it?A particular market where stocks and bonds are traded; stock exchange. The global market for new and second hand stocks.It consists of individuals and organizations, that are willing and able to buy stocks and shares as well as those who are willing and able to sell them. a share in the ownership of a company

3What is stock?Stock is the money raised by stock companies, corporations or the government.

Whether you say shares, equity, or stock, it all means the same thing.A company is owned by shareholders (person or organisation that buys and holds shares).

They sell stocks in the form of shares.

The price of a stock doesn't only reflect a company's current value, it also reflects the growth that investors expect in the future.

4Market capitalizationIt is the market value of all shares issued by a company and a measure by which we can classify a company's size

Market capitalization is one of the most important characteristics that helps the investor decide on the risk and returns in the share. It also helps investors choose the stock that can meet their risk.

investors buy and hold stocks in companies, because they hope that the market price of their stocks will rise, so they can sell them for profit.

Calculation : outstanding shares x current share price5Share capitalHow do firms raise them to finance their activities through stock exchange?

Share capital is money raised by companies for investments from the sale of shares

Firms sell shares to make profit from them and to finance their activities ex. Hire labour, buy capital (machinery) and for land.

Firms can choose when to sell their shares.

6Movie about stock markets in England

https://www.youtube.com/watch?v=ejjNMnIo3Fg

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8Referenceshttp://www.investopedia.com/university/stocks/stocks1.asp

http://www.hightoweradvisors.com/who-we-are/hightower-advisors/hsw-advisors/blog/wp-content/uploads/2013/01/stock-market-cartoon.png

http://www.investopedia.com/university/stocks/stocks4.asp

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