Stock Market Overview

Stock market is a place where buying and selling of stock happens and the whole process is called as stock trading or stock investing. Fundamentally stock market is recognized as heart of each countries economy; in fact it is called as mirror of economy. Any unusual impact on economy puts a significant immediate effect on stock market. If stock market is able to give out consistent gain to investor, it shows a good sign of healthy economy.

Stock market performance is dependent upon the companies listed on stock market, in-fact if the stock market is performing very well, it becomes a chance for new companies to get listed on stock market via route of bringing their IPO, by which they can raise money, which they can use for their expansion plan or can use money to acquire new company or for any good reason by which the companies value will increase in future giving high returns to company owner as well as investors.

If companies listed on stock market are profiting good, it gives out a positive signal of healthy economy, which creates a center of attraction to local as well as large number of foreign institutional investor to invest their large amount of money. If more money comes into the market, it creates enough liquidity, which helps stock investors as well as stock traders to make more profit. If stock market is performing poor, it gives out negative impression of slowdown in economy which is bad sign.

With the globalization and increased standard of living of citizens it had become mandatory for government of every country to monitor and maintain their economy in healthy condition. A large amount of stock market performance is dependent on government policies. If the government policies are suitable to increase the profit growth of companies than it will show a healthy sign in stock market. Stock market is more active at the time of government announcement like budget, policies, regulations, etc

Other factors that impact stock market is increase of interest rate, increase crude oil price, unsafe global environment, and many other major external factors which might have adverse effect on economy.

History of stock market
The history of stock market is quite old. Centuries and centuries back, small amount of community traders come-up with an idea of stock trading/stock investing. With the development in technology, stock market also come-up with different look and developed ideas to conduct stock trading/stock investing and now a days with the recent development of technology, basically the internet which had brought a new revolution in stock market, many and many small retail investors as well as traders are able to do stock trading as well as stock investing from comfort of their home; and investors and traders with good understanding of stock investing and stock trading are able to make a good sort of money from comfort of their home.

Myth of stock market
It is having said that no one in the world, neither the stock market gurus like Warren Buffett, George Soros or Jim Rogers can predict the behavior of stock market but still these peoples makes consistent money through stock market by doing stock trading as well as stock investing because they are thorough with their stock market knowledge and adopts proper strategy which helps them to make consistent profit. Many of the experts also believe that stock market is a gamble market. A lot of time speculation plays an important role in stock market and it becomes a hard task for newbie to conduct stock trading or doing stock investing. Any euphoria in positive side makes a significant move of stock market in upward direction and it is good sign for many investors as well as traders to make a large amount of money, but if there is any negative significant rumors than it becomes a worst phase for stock traders as well as stock investors and particularly the small retail investors who are the worst impacted person in whole stock market. At many occasions millions and billions of money of stock investors are washed away in stock market due to any sudden significant negative occurrence and millions of the investor’s money is completely dried up in within few days due to this phenomenon of stock market, so having proper strategy and deep understanding of stock market is only a perfect thumb rule to make consistent profit in stock market.