Businessman’s Perspective to Stock market:

To join a stock market is not easy fro a company because these exchange has rules and regulations.It can take years to meet these requirements,For example the firms that are listed on BSE are the firms with billions of turnover and some of the biggest corporations in India -bluechip companies like Reliance,Infosys,Wipro Bharti Airtel etc.

A corporation cant issue shares till its private ltd ,once it goes public (actually this process is called IPO (Initail Public Offering) it allowed to trade its shares on stock market.

Every firm try to convince investors to invest in their stocks,parallely they also take care of existing share holder.To convince bid investors corporations have to show their performance or how their firm is doing.Hence they publish its annual report etc.

You will later understand how a hoax cause market to fall a deep.

Types of Investors:

1] Individual Investors:

Warren Buffet is the magical person who could bring Bill Gates from his position in wealthiest person list how ? surely by stock market.He is one of the most profitable investor of his time.Today he is owner of a firm with share price of $70,000 per share,Hathway Yorkshire.He became billionair using buy and hold strategy.

2] Traders:

these are investors who don’t care about long term perspective.They use market for their bread and butter hence they sell stocks at every profitable moment.They only focus on price of shres.We call them Share Brokers.

3] Trading Professionals:

these pro people invest in market on behalf of their client.They take money from client and invest in market,make money.They work in brokerage and stock exchanges.