Hello everyone, welcome to Skill Double. In this article, we will try to understand, what is share market in a more simplistic way with examples. So, let's start!
Like any other market, for example. Fruit Market. Vegetable Market. Fish Market. or Garments Market where vendors try to sell their products to buyers. The vendors usually display their products and offer to sell them at a price determined by the Demand for the product. If the Demand for the product is high the Price is High. If the Demand is less the price is low.
Similarly, in a share market. Companies try to sell their shares to the general public or Institutions. Here the shares are listed by the companies and a buyer can buy them at a price which again here also is determined by the demand for the company's shares. So if a company is doing really well with regards to its financial reports or is very popular among the masses due to the right reasons then the price of the share is high. Alternatively, if the company is not performing well or has bad publicity around it then the demand is low, and the price is low.
This is the very reason why traders sit in front of monitors and constantly check the graph for fluctuating prices of shares.
So, to summarize share market is a place where Companies list their shares to be purchased or Sold.
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