What is stock exchange and its functions?

Stock Exchange:-

A stock exchange or stock market is a center where traders buy and sell shares of companies.  Companies want to get their stock listed on the stock exchange.  A big company usually has its stock listed on many exchanges across the world.

Now the point comes that what are the shares:  Shares are a small part of a company, when someone buys shares in a company it means buyer owns a small piece of that particular company.  Price of shares based on many different things. The main thing that affects the price of shares is the balance sheet between demand and supply. Let us know how it affects, if so many traders want to buy a stock then the price of that share goes high and if there is more sellers than the price of that share goes down.

Stock Market Functions:-

  • Pricing of Securities: Stock market provides the platform to get the values of the securities on the basis of supply and demand factors. The securities are valued higher as there is more demand, through this way the price of securities is determined, more demand the more value of securities.  Investors can know the value of their investments, thus; valuation of securities is very useful.
  • Safety of Transactions:  Each stock exchange is organized market and has its own law. Every member has to follow the rules similarly companies also have to follow the strict rules and regulations. This will ensure the safety of selling and buying through the stock exchange.
  • Contributes to Economic Growth: Many company’s securities are bought and sold in stock exchange, investors can buy securities to get benefit and can sell in case of need of money. These processes of investment encourage the investors to invest their money in industries, thus economic development becomes possible.
  • Spreading of Equity Cult: The stock exchange plays an essential role to encourage the investors to invest in ownership securities.  Stock exchange guides the investors by giving them economic updates generally this information is published, by giving knowledge about investment and giving better trading practices and much more.
  • Providing Scope for Speculation: When investors buy shares to get a profit as a result the changes in market price of that shares called speculation. Some scope of speculation must be allowed in order to provide liquidity to securities, share market provides this facility.
  • Liquidity: The main function of the stock market is to provide a platform for buying and selling shares and through these investors get assurance that they can convert their investment into cash whenever they want. So, investors invest in long term investment without any hesitation because they can convert it into short term and medium term whenever they want.

MarketMagnify provides accurate trading tips like Equity Tips, Stock Cash Tips, MCX Commodity Trading Tips, Future & Option Tips on mobile through various ways. We also provide daily and weekly news letter based on stock market. All the trading tips and news are analysis by our expert research team.

Trading Analysis in Financial Equity and Stock Market

Analysts are key financial market stockholder. Researches often use analysts’ makings forecasts as proxies for market expectations and differences in opinions. In addition, analysts’ earnings forecasts are one of the rare settings for which researchers have a large natural data set of individual analysts’ real judgment, and for which the bias in decision making can be observed and verified ex-post. Not surprisingly, the activities of analysts have been a fertile ground for behavioral research. Ago studies have shown that analysts oft suffer from a no. of biases. However, the implications of these believable cognitive biases for traders and, even more so for directors are less understood.

While we believe stocks will trump bonds again in 2014, we do not think the outperformance will be nearly as thespian, and there will likely be periods till which stocks underperform bonds and alternative. In other speech, this is not a time to back down one’s asset allocation and portfolio diversification. Just as a doctor would not recommend an unbalanced crash diet to make up for bad eating habits final year, we think it’s important to stay disciplined with one’s investment approach in order to maintain good financial health.

The challenge will come if rates move higher too quickly and equity investors start to anticipate retardation, which we think could happen later in the year but not in the near term. Therefore, we maintain our healthy appetite for equities as we begin the New Year—but still in the context of a well balanced and diversified diet.

The macroeconomic environment forecast by our economists for this year should prove positive for Equity Tips, given expectations for a moderate pickup in global GDP growth and central-bank policy that is likely to remain highly accommodative. While equity valuations have risen materially in the developed markets over the past year, we do not believe they are overextended. What’s more, the relative valuations compared with other asset classes remain compelling.

Stock Market Trading Plan & Ideas

For best trading in stock market everyone need a best planning and tips. This content provides all basic strategies to traders and investors. We are tried to give you best knowledge about market. Just read it and get benefit of trading in stock market.

Stock is ownership in a company with each share of stock describe a tiny piece of ownership. The further shares you own, the company you own, and the longer dividends you earn when the company makes a profit. In the stock market world, ownership is called equity. Stocks market is dividing in two primary classes. The first you choose depends on what you want from a stock market. Preferred stock typically pays continue dividends, and traders who want income foremost from their stocks favor it. Common stock represents proprietorship of a company and may offer more rights and privileges than preferred stock. Investors may purchase stock on the primary or secondary market.

A company sells its stock to the public on the primary market through its initial public offering. The primary market is the market in which investors have the first opportunity to buy a newly issued security. Investors may sell their shares through brokers to other investors on the secondary market. The secondary market can be structured as an auction market. Stock prices (quotes) can be found in morning newspapers, on news of television and the also on Internet.

Secondary market refers where securities are invest after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Many of the Investment are done in the secondary market. Secondary market include of equity markets and the debt markets

When you buy a share of a company and firms, you become a share holder and member in that company. These Shares are also known as Equities. Equities have the probable to increase in rate over time. It also gives your portfolio with the development necessary to reach your long term investment goals. Research studies have proven that the equities have outperformed most other forms of investments in the long term.


  • Equity is considered the most challenge and the rewarding, when weigh to other investment options.
  • Research studies haveproven that investments in some shares with a longer tenure of investment have yielded far superior returns than any other investment.
  • However, this does not mean all equity investments would guarantee similar high returns. Equity ishigh-risk investments. One needs to deep study them carefully before investing in market.

A stock is described by a stock certificate. This is a part of paper that is proof of your proprietorship. Today it’s in dematerialized form that is in electronic form shares have been kept safe and secure. This is done to make the shares easier to invest. In the past, when a individual wanted to sell his or her shares, that person corporally took the certificates down to the mediation. Now, investment with a click of the mouse or a phone call makes life easier for everybody.

Research and Analysis of Commodity Market

Here I give information about commodity market which is given everyone basic trading approach. New traders read it and put money in the right way with full of knowledge because some knowledge is very risky for trading.

The first commodity trading tips I can tell you is to really master your market or niche. There are hundreds of markets out there, but you really just have to master one to do very well. Some grocery stores are much friendlier to beginners than others (such as coffee or sugar), then I recommend starting in one of those “easier” markets. Discover what makes the prices go up and down, where most of these physical come from, any political or economic factors going on in those parts of the globe, etc. While most people use the news to find out “what’s going on”, you’ll be using it as you’re inside the source to decide when to trade bullion contracts

Instability of market prices has always been a major concern of the producers as well as the consumers in an agriculture dominated country. Farmers’ direct exposure to rate rise and fall, for instance, makes it too risky for many farmers to trade in or else profitable activities.

The Commodities and Futures Trading Commission developed through Indian National Congress, in 1974 to regulate futures and options markets in the United States. It is primary aim is to protect market users and the common from fraud, manipulation, and abusive practices to the sale of the thing and financial futures and options, foster open, Competitor, and financially sound futures and option markets. As this pertains to trading clubs, the registers persons that work bullion pools for profit.

A futures contract is an agreement to buy or sell bullion at a date in the future. You buy or sell through brokerage firms that transact the deal for you. We must deposit a performance bond (a small percentage of the contract value) with the brokerage firm to insure any loss you may incur on the futures contract. If the price of the contract goes opposite your place to deposit more money. You also convey a broker a commission for every contract traded.

In futures prices show the cost of delivering a commodity tips to a specific situation. Cash prices show the cost of delivering (perhaps a different quality) to a different place. These prices include shipping, carrying charges such as storage costs for grain, and marketing costs such as weight shrinkage for livestock. Basis reflects supply and demand for giving bullion in a given place along with the cost of delivering (perhaps a different quality) to a different place.

1 6 7 8