Money market or what is referred to as the stock market is the place where trading of financial items such as the stock or share and bonds takes place. companies and governments sell shares and bond to raise capital for expansion purposes and development projects with the promise of paying at a later date and the buyer (you) own part of that company.Depending on the type of shareS you bought you may have the right to vote in the matters of the company .Today trading of shares is fast and simple as you can do acquire or dispose shares online from any part of the globe.
however there are those country that hasn’t yet digitalized the process and people have to use the central depository agent,therefore the first thing you need to do is open a cds account,with a cda(central depository agent) regulated by the central bank of you country. You only need a bank account and your identity card or passport and maybe a passport photo.It’s in this account where all you transactions will be transferred electronically whenever you purchase or sell your shares
the risk involved in the buying of shares is high as if you don’t do a proper research you could lose all your investment before you put your money, you need to check the company itself management visions background and prospects.this infor is freely available on the companies website or alternatively research analyst firms including your cda will have that information but this might come at a fee
You should look out for the historical and current financial positions well as the future projections of the company in terms of growth,earnings per share and the competition.A good company to invest in should have a solid plan and high earnings and profit after taxes and after preference shares has been paid out.Market also should not volatile
The time as to when you should invest or even sell your share must be the right time to gain maximum returns and avoiding any risks of losing your investments.Most people buy stocks when the market seem to be thriving and sell when the economy is constrained this should be guided by the proper research on the the economic change but one thing i have learned over extensive reading on stock markets those people who buy are are patient enough and don’t pull out quickly those who buy when others are selling reap high benefits
Another fundamental, of long term investments pays back rather handsomely compared to short term investment so invest now for money that you will need 10 years later
The prices in the stock market just like any other market are determined by the supply and demand this however is not the only price determinant. when people want to buy more of that share the prices will go up and vice versa. always look beyond thats what makes wealthiest people .