Markets go crawling up, fortunes are built,
and fortunes are lost. Just name it as people have seen it all.
As everybody might expect to stay
profitable over the years, traders have studied the markets and followed trends
very carefully to devise the right methods and strategies to make consistent
profits through trading.
Whenever a company wants to raise funds for
further expansion or setting up a new business venture, they have to take a
loan from a financial organization or they have to issue shares through the
stock market. In fact, the stock market is the primary source for any company
to raise funds for business expansions. If a company wants to raise some,
capital for the business it can issue shares of the company that is part
ownership of the company. To issue shares for the investors to invest in the
stocks a company needs to be listed to a stocks exchange and through the
primary market of the stock exchange they can issue the shares and get the
funds for business requirements. There are certain rules and regulations for being
listed at a stock exchange and they need to fulfil some criteria to issue
stocks and go public. The stock market is primarily the place where these companies
are listed to issue the shares and raise the fund. In case of an already listed
public company, they issue more shares to the market for collecting more funds
for business expansion. For the companies, which are going public for the first
time, they need to start with the Initial Public Offering or the IPO. In both
the cases, these companies have to go through the stock market.
This is the primary function of the stock
exchange and thus they play the most important role of supporting the growth of
the industry and commerce in the country. That is the reason that a rising
stock market is the sign of a developing industrial sector and a growing
economy of the country.
Of course, this is just the primary
function of the stock market and just an half of the role that the stock market
plays. The secondary function of the stock market is that the market plays the
role of a common platform for the buyers and sellers of these stocks that have
a listed at the stock market. The secondary market of the stock exchange
constitutes of retail investors and institutional investors buy and sell the
stocks. In fact, these stock market traders raise the fund for the businesses
by investing in the stocks.
For further information and enquiries,
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