What is the function of the stock market?

Answer 1

hey what stock market does is nothing but trade different scripts listed in it....there are different aspects through which we can trade in it....if you are interested in learning about it then i have this site called www.utvi.com wherein there is a section called utvi school which will help you learn about it that to right from scratch.....

Answer 2

Goes Down(Kaylop)

You can make money in a Bear Market when stocks go down by "Selling Short"

Short selling stocks is the most misunderstood and under-utilized of stock trading techniques.

The idea of making money because of a stock price dropping, seems very foreign and down-right doesn't seem to make sense to most people.

Many stock investors feel it's un-ethical to sell short. They seem to believe we have to root for our companies to do well. Since most people in the markets have a natural tendency toward optimism, selling short is often viewed as being negative.

The fact is, there is absolutely nothing wrong with recognizing the reality of both the marketplace and economy.

Cycles are a fact of life. In the same way that it's rational to sell and avoid a large loss when a stock starts to decline, it's also reasonable to profit from that decline.

So what is short selling?

Selling stocks short is placing a sell order for shares you do NOT currently own, in the expectation that the share price will drop in the future.

For example, if you sell short company XYZ at $30, you simply borrow the shares from your stock broker for delivery to another buyer. If XYZ drops to $20, you then buy XYZ stock shares to replace those you owe your broker.

And in the process you make $10 a share.

So who says you cannot make money in a bear market?

It's a statistical fact that stocks decline faster than they rise. The reason being because fear causes a panic reaction, while greed takes time to simmer.

So if you learn the rules for short selling stock and learn to use the proper tools, great profits can be yours!

Answer 3

When a company with a proven track record needs money for investment they will offer shares at price on the stock market. As the company grows, more shares are offered and the price fluctuates based on what the people buying the stock think the company is going to do...grow or slow down. The Stock Market is basically an auction house selling (trading) these offerings called stocks.