Table Of Contents
ExamplesĀ
Letās go through a few stock market examples in detail.
Example #1
A stock market comprises primary and secondary markets. For example, assume an online payment service provider decides to raise funds for business expansion through an IPO in the stock market.
As a result of creating securities, it has become a publicly-traded company with marketable shares in the primary market. The company enters the secondary market once its primary market shares are traded.
An investor named Clara buys its stock at a predetermined price. She, thus, becomes a shareholder in the business and has the option to buy or sell her shares based on market conditions and live share market news.
Example #2
As per the share market live updates, Nasdaq has recently dropped due to the astonishing decrement (35.1%) in Netflix subscribers. As investors anticipated, the streaming serviceās biggest 1-day fall in 10 years has negatively affected other high-growth firms too.
Walt Disney, Roku, and Warner Bros Discovery stocks fell over 5.5%. Moreover, Zoom Video Communications, Doordash, and Peloton Interactive stocks dropped by 6%-11.3%.
Contrastingly, the blue-chip Dow reported a second-consecutive higher close owing to positive earnings from Procter & Gamble (2.7%). Furthermore, IBM Corpās earnings also rose by 7.1%.
Frequently Asked Questions (FAQs)
Share market works in the following step-by-step manner:
1. Listing of an enterprise in the primary market through IPO.
2. Distribution of shares in the secondary market.
3. Communication between the interested investors and their brokers regarding the number of shares to be bought.
4. Relaying the order at the stock exchange to match a sell order at the prevalent market price.
5. Delivery of shares to the investorās account.
The share market opens at 9:30 AM Eastern Time (ET) and closes at 4 PM ET. Moreover, the timings for pre-opening and early trading sessions differ as per the stock exchange.
No, the share market is not gambling. The former designates the investors as shareholders while they own nothing in gambling. Also, trading has no definite concept of winning or losing, but it is only a competitive marketplace.
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