Stock market meaning. Stock investors who are still beginners have to learn a lot about the world of stocks. The reason is so that you get the maximum return or return from stocks and also so that you don’t have to worry about stocks anymore.
Even though many people have started investing in stocks, it does not mean that they fully understand the stock market. So, what exactly is the stock market, and what are its purpose and function?
Stock market meaning
A stock market is a place where investors are connected to make buying and selling transactions of shares of public companies either through the stock exchange. The stock market is a market that holds the sale and purchase of shares.
Activities within the stock market involve sellers of shares, buyers of shares, and institutions and jobs that have an interest in the shares being traded.
Parties to the Stock Market
The main parties involved in the stock market are investors, speculators, and the government. Each of these individuals has different goals and interests, but the main goal is the same, which is to obtain maximum profit through fundamental analysis as well as technical analysis. Other parties who are also interested in the stock market are issuers, underwriters, and brokers.
Purpose of the Stock Market
There are two common goals among the parties concerned about the stock market. The first is to provide maximum profit, while the second is to make decisions that have a sustainable impact. Each party also has different goals and other interests in the stock market.
In the stock market, the sellers are securities companies and the buyers are investors, and the goods sold are necessarily stocks. In addition, the stock market that enters the Indonesian capital market also sells bonds or debt securities, ETFs, mutual funds, and others.
How the Stock Market Works?
The stock market is a place to conduct buying and selling transactions of public shares. This stock buying and selling activity are through the stock exchange. You don’t need to imagine that the stock market is a market like in general where you meet to make stock buying and selling transactions.
Those of you who have become individual investors must be facilitated by securities companies to buy and sell shares. Each securities company provides an online trading application for people who register themselves.