While one of these transactions takes place electronically, intermediaries transmit orders. The buyer determines the highest price, the seller determines the lowest price. Intermediaries also send these orders.
While one of these transactions takes place electronically, intermediaries transmit orders. The buyer determines the highest price, the seller determines the lowest price. Intermediaries also send these orders.

What is the Stock Market?

   If hearing this word speeds up your heartbeat, it is time to learn exactly what the stock market is. Here’s what you need to know…

   Main elements of financial health; can be summarized as earning, saving, investing and protecting money. At this point, the challenge for all of us is to invest. Because whether or not we can make a profit is preoccupied with our minds. In addition, investment has a certain risk level.

   Leaving aside other methods, we can think that the stock market is the safest way. Because it is a formation that has existed for years. It also gives confidence that it has a variety of control mechanisms.

   Namely, while cryptocurrencies offer crazy profits, we want to sell the house and enter the car. However, the thought that it could disappear suddenly stays in our minds. The fact that the output speed and the decrease are the same proves this.

   Our aim in this article is to explain the stock market in the most understandable way. Even if you know nothing or little about it, you will have learned the logic of the market by the end of the article. So you can decide if you want to invest.

As the word “What is Stock Market?”

   Buying and selling of stock exchange, commercial goods and valuable documents by buyers and sellers. This is the exact equivalent in word.

   Let’s elaborate a little more. Here, publicly covered shares, bonds, bonds, funds and commodities that we call commodities are traded.

   Investors, on the other hand, consist of sellers and sellers. When trading a share to buy a buyer, the seller sells the stock in order to take profit.

   While one of these transactions takes place electronically, intermediaries transmit orders. The buyer determines the highest price, the seller determines the lowest price. Intermediaries also send these orders.

   In this way, the stock market is a mechanism by which supply and demand are created and prices are formed. It is complex but based on simple logic. It realizes a certain sale and its trade is sold together with the buyer.

   NYSE, Nasdaq, Euronext Paris and Borsa İstanbul; one of them is the stock market. All of them have their own characteristics. There are also indicator indices.

   Indices such as the S&P 500 and BIST 100 are the main reasons for the news “the stock market fell, broke a record”. Because these indexes follow the stocks of important companies. Movement in these stocks gives information about the general state of the market while moving the index.

   This is one of the important things you should know as an investor. It is possible to have an idea about the market according to the fluctuations in the indices.

What are the Basic Functions of the Stock Exchange?

   The stock market is where everyone can access the shares of public companies.

   Buyers and sellers meet here to buy and sell these shares. Since there is a certain control mechanism, they can safely evaluate their money.

It has 3 basic functions in general. These;

Buying stocks: Anyone can buy stocks, regardless of whether they are a daily, individual or institutional investor.

Selling stocks: The buying process provides a suitable environment for the realization of the sale after having a certain profit as possible.

Stock issue: When a company wants to raise money, it decides to sell some of its property on the stock exchange. This transaction is called an IPO. The company opens its shares to the public through public offering. This way, both the company and investors earn money.

   Its functions are of course not limited to these, but knowing that much is enough for now.

How Does It Work In The Stock Market?

   The most basic information about the operation; to make a profit by buying when prices are low and selling when prices rise.

   So how do you make money in a market that works this way?

   Let’s explain it in the simplest way with an example :

   You bought the product, the price of which decreased with a discount or any campaign, for 10 Turkish Liras. Let’s say you sell this product on the internet or elsewhere for 15 Turkish Liras.

   The 5 Turkish Liras difference is your profit. This is the same in the stock market.

   In addition, you do not need to search for buyers and sellers to make this purchase and sale. Your brokerage firm does this job for you.

   You sell a stock or gold that you buy at a low price when its price rises. The difference between buying and selling is your profit. Knowing when and why prices are falling is the most important research you need to do.

Why Do Prices Increase – Decrease in the Stock Exchange?

   Prices formed in the stock market vary based on two factors that we call supply and demand. If you follow the news that prices are falling because demand is decreasing and supply is high, you will hear.

   The price decreases due to the high production but the lack of demand at the same rate. If we think the opposite; When production is limited and demand is high, the price will rise.

   Changes in supply and demand will cause prices to fluctuate in this way. Of course there are some factors that affect this balance.

   Many reasons such as decrease or increase in per capita income, increase or decrease in unemployment rate, problems in the economic growth of the country, interest rates and inflation will affect the purchasing power of the people and will cause a change in supply and demand.

   By learning this data and following the developments, you can easily comment on how prices may change in the future.

Are There Risks While İnvesting İn The Stock Market?

   Of course there are risks here too. Moreover, if you are making this investment, you should consider both long and short term risks.

   The prices of the shares can rise or fall suddenly. This is an indication that the stock market contains risk factors. Of course, sudden movements are often blocked by circuit breakers. However, this indicates that you need to change your portfolio.

   You should consider the existence of these risks to make your investment decisions. You cannot act like there is no risk. After all, you are investing a lot of money in this business, and as with other jobs, everything can end badly here.

How Does the Stock Market Work?

   The stock market actually works like an auction center. This will not be wrong at all, considering the determination of prices.

   Buyers want to buy at the lowest possible level. In this way, they propose a price they are willing to pay for a share. This is called the “best buy offer“.

   Sellers also aim to increase their profits by selling at the highest price. Sellers bid the price they are willing to sell the stock they hold. This is called the “best selling offer“.

   The difference between these two offers is called the spread. The two sides negotiate to meet in the middle. Firms that mediate these transactions also receive their fees from this difference.

   While tracking stocks, you will see prices move. This is directly related to the number of investors willing to buy or sell. At the same time, the number of these procedures is also effective in mobility.

   Transactions take place on an individual basis by negotiating the purchase and sale prices of the shares.

Who Uses the Exchange?

Important tips available in the market can be listed as follows:

Individual investors: They are investors who purchase and sell individually through a brokerage account.

Stockbrokers: They are registered representatives who have been trained on this subject and passed the licensing exams. These people can buy and sell securities on behalf of investors. They exist as intermediaries in transactions.

Brokerage houses charge a certain fee from customers for brokerage and trading.

Portfolio managers: They manage large portfolios that investors may have. For this reason, they make large trades. Later, they become responsible for the management of this portfolio.

Investment bankers: They help companies list their shares.

What to Invest in the Stock Exchange?

   We generally commemorate the stock market with shares. However, it is home to many more instruments. There are different markets and markets for these.

   Under these markets, there are markets and various products. These are all instruments that investors can use.

   In short, instruments that can be invested; stocks, bonds, bills, repo, eurobonds, warrants, exchange traded funds, real estate certificates, futures contracts, options contracts.

How To Enter The Stock Market?

   In this article where you know the market, we would like to briefly talk about how to enter the stock market.

   To start trading, you need to open an account with a brokerage firm. You make your investments through this account. Therefore, do not neglect to master all the details about the account.

Author: Mr. Article

All rights of this article belong to www.pophaber.com

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Push-ups are essential for home workouts. Make sure you're in good shape to get maximum benefits. Your spine should be straight and in line with your hips that you haven't lowered. You usually need to open your palms a little more than your shoulders, but you can open your arms for better chest work or bring them closer together for better arm work. You should also do incline push-ups for better overall muscle development.