What Is The Stock Market?
The stock market is an online trader.
Centers of finance, such as London and New York, have their own stock exchanges – that is, their own retail shops or venues where investors, whether they are private individuals or banks or pension and hedge funds, can purchase and sell shares of stock.
Remember: One share is a part-ownership of a company.
At present, stocks and shares can be more commonly acquired on the Internet through a stockbrokers' website, in the same way that Amazon conducts sales through its website.
You can acquire or sell shares in businesses from the US, UK, Europe, India, Japan and other nations over the stockbroker's website.
The Stock Market – The Traditional View
When people mention the stock market, they often refer to the stock exchange (retail outlet) in their own country. For instance, my stock market is the London Stock Exchange.
Through my stockbroker's website, I gain access to exchanges globally and buy and sell shares on the London Stock Exchange as well as The New York Stock Exchange, The NASDAQ and The American Stock Exchange.
Like Amazon, a stock market is a venue where buying and selling takes place but the only goods available offers are shares.
As you can see in particular, the stock market and stock exchanges are retail shops for the acquiring and trading shares.
How You Can Profit From the Stock Market
Customarily, people earn from the stock market through their membership of a pension plan either privately or through a company they work for. In the US, this is traditionally done through the 401(k).
At times, people will invest money into mutual funds to make money off the stock market and assign somebody else do the job of selecting stocks. The advantages of stock picking by mutual fund managers have not been that commendatory.
And this is not merely a phenomenon that occurs in the US.
The UK pension industry has been often criticized for making profit, not from the stock market, but from the fees they charge their clients.
The only way to earn from the stock market is to take ownership and control of your involvement in it. Allowing others to do it for you will lead to an erosion of the wealth you have worked so hard to create.
What Is The Stock Market? The Real Answer Deep Blue Publications Group LLC
Deep Blue Publications Group LLC provides the investor the potential to earn from the folly of other stock market players. In short, stock market is basically composed of the participants in it, such as private persons and institutions like hedge funds, pension funds, banks and mutual funds, who acquire and sell shares.
The stock market, ultimately, is not the millions of share-price figures flashing across the display monitors of day traders.
The "folly of others" simply refers to the stock markets' strange capacity to drive up and shrink the values of companies – they undervalue and overvalue them.
You can earn from their folly by:
- Purchasing shares in businesses when they are undervalued and;
- Selling them when they reach their full value and
- Keep away from the stock market when and if they are overvalued.
This is entirely in contrast to the gamblers mentality of attempting to buy in bear markets and attempting to sell in bull markets.