The stock market is an extremely tricky concept in the field of stocks. Stocks are the fastest way to earn more money and also make really good profits as well. People these days tend to get a little jittery when their incomes and salaries start facing a few hiccups. In these situations, stocks are the best way to go. The stock market exists in almost all the countries and every country handles stocks in a totally different way.

What are stocks?

Stocks are basically shares of a particular company which can be bought and sold for a particular amount. There will be a pool of many buyers, sellers and also businessmen who are always on the money and by the counters to see which company has stocks that have taken a dive and which company has stocks that are ready to be bought for a good amount of money. It is an amazing way to make money but, it comes with its own hiccups at times.

For example, suppose a person invests some amount of money in a particular stock, and if the stock takes a dive in the stock market, then the investor will end up facing huge amounts of losses that will be incurred. It is all a game of luck and brains, the combination of which will help the investors to act smartly and wisely.


Stocks, shareholders, and equity

The shareholders are the ones who basically purchase stocks and shares of a particular company. Stocks are that kind of assets that are basically bought or sold by shareholders and various businessmen. The companies give equity on a particular amount of stocks and shares that are purchased by the businessmen and other shareholders and the company that reaps the most profit wins most of the shares and stocks at the end of the day.


How the stock exchange works?

Tokyo has the third largest stock market in the world, following the one at New York and NASDAQ in the United States of America. Any stock exchange first sees the nominal value of the most basic currency nomination and then does the stock exchange process accordingly. It is basically all about selling and buying stocks with equal amounts of share pricing and equity. (Source: Aktien für Anfänger)

This can be explained with a simple and basic example. The difference between the nominal value and the price value can be simply explained using the nominal value of a particular currency. Today let us consider euro where we can consider having a 1 euro coin lying on the desk. It is a known fact that this coin has a nominal value of exactly EUR 1. People assume that the coin might have a misprint or may also find that it is a particularly limited edition. This is a very common case on the rare stamps.

So, guys stocks are not an easy thing to grasp but once people learn the art of doing so, it can certainly become a real addiction! Stocks require some serious application skills and also certain another set of skills that are essential while dealing with stocks!