Right into stocks can make you so rich or shingles? Is this stock like a wukong or a fish shoot?
Early records of stocks can be traced back to the 1600s when the Dutch East India Company used hundreds of large ships for the purpose of trading gold, porcelain, spices and silk around the world.
Since the operation to carry out such trading activities is costly, traders will ask individuals who can and can afford to invest their money to cover the cost of the trade.
However, asking for money just like that will not yield results so in exchange part of the profits of the trading proceeds will be given to individuals who have invested their money then what is now known as stocks happens.
Originally the way of selling stocks only took place in coffee shops and shipping ports then expanded until the creation of the first stock market on earth.
From then on, companies will raise funds from investors willing to support all types of businesses until there is a school for the stock market and people who make stocks a career.
However, today's modern stock market is more complicated than ever, where
1) The company will advertise their product to investors and interested investors will buy the company’s shares
2) the company whose shares are purchased can be listed on the exchange as a public issue stock (IPO) which can attract more investors who are interested in investing
3) each investor will be given a stake in the company they have invested in and the more people invest the more the company grows
4) when the demand for stocks increases then the stock price also increases
5) but if the company loses, the value of the shares may fall then investors who are anxious will sell their shareholdings
Basically stocks depend on supply and demand and both of these things can be influenced by various factors.
Want to know what more about the concerns that make investors sell their holdings? Want to know about the factors that affect supply and demand?
