What is Share Market (Stock Market), Trade and Equity Market?
What is SHARE MARKET?
Share Market is also called the Stock Market or Equity Market. Share market is used to divide the expenditure between people and owners. The company sells shares to the people by share brokers they are professionals who buy and sell those shares to both retail and institutions. The size of a share depends upon the balance of the company on its outcome goods and sales in the market.
When we talk about the size of the market these share markets are divided based on the company’s origin or to which country does it actually belong. There are 60 Stock Markets all over the World including the Swiss Stock Market and US Stock Market with a total market capitalization of $69 trillion. There are 16 Stock Exchange Markets whose capitalization is more than $1 trillion with 87 % of total global capitalization. These 16 Global Markets belong to North America, Asia, and Europe.
When we talk about Trade it means granger of money or stocks from buyer to seller. They discuss on ownership interest in a particular company whose stocks they bought. The participants may be small or large trade investors who can belong from any part of the world which may include banks, insurance companies, etc.
FUNCTION OF TRADE MARKET
The main function and purpose of these share market are increase money for companies. This allows increasing the business and trade. The real estate is the attractive feature in the market. The rise in shares increases the business investment which also affects the property’s of the owners so the central banks keep an eye on them. The stock market is an indicator for contras economy. Exchanges also give the guarantee to the being it’s of seller and buyer.
RELATION OF MODERN FINANCIAL SYSTEM WITH SHARE MARKET
The financial system is transforming in most of the countries. The second transformation is replacing human trading to electronic trading. Not only benefits we may also have losses. When the market crashes there will be a deep decline in the prices of shares. Some of the famous share market crashes are Wall Street Crash in 1929, the Stock Market Crash of 1973-74, the Black Monday in 1987, the Dot-Com Bubble in 2000, the Stock Market Crash in 2008.
One of the most destroys stock market crash started on October 24, 1929, on Black Thursday which was during the beginning of the great depression. The Dow Jones industrial average crashed by 50% another famous crash was Black Monday.
SHARE MARKET PREDICTION
Stock Market Prediction is very important. Tobias Press had introduced a method of identity for share market prediction. Their analysis for 98 terms of varying financial relevance tells that an increase in search volume for financially relevant search terms tends to precede large losses in financial markets. These are some of the concepts of the sharemarket.