Thursday, October 23, 2008

STOCK MARKET FOR BEGINNER

We can define stock market simply as a place where buyers and seller met. You can imagine a super market or a shop that there are transaction between buyer and seller. The buyer need some goods for themselves, and the seller provider goods with little profit, and cause there are many buyer, so become big profit. Actually, the buyer also have profit when they lost their money and change with goods that needed for them.
Stock market just like the same. Imagine, you want to build the company that very you desire all your life. You believe that you can manage this company with your skill and you trust that you can make earnings. But there a little problem that barrier, is, you do not have money to build your company. Or you have a company and want to expand your market share, but you have not enough money. So what do you want to do?? In many case, you can borrow money, from your friends, your family, or if you were lucky, you get lottery.
Fortunately, there are another way to solve your problems. You can get money from people, even you don’t know before from stock market. Stock market can be bridge from the company and the people who have a more money but, maybe, have no time to manage the company, or the others reason, so they just put their money to one company. Of course, the company have agreement, to give their earnings to them.
The mechanism and the rule stock market are different from one country to the others country. But actually, stock market become mediator between people who have a lot of money with the company that need money to maintain their operational or expand.

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