Learn the Stock Market

In order to know what stock is and the basic meaning of stock market first we have to dive into the history of stock market specifically , the history of what has come to be known as the corporation. Corporations in one form or another have been around ever since one guy convinced a few others to pool their resources for mutual benefit. In order for a corporation to do business, it needs to get some money from somewhere. A stock is a piece of ownership of a company. When a Company needs some money, which is helpful in growing business, they acquire extra money by selling ownership in small percentages in form of stocks. The word stock trading is commonly used to describe both the physical location for buying and selling (trading) stocks as well as the overall activity of the market.

There are two analytical ways in investing in stock market,
1) Technical
2) Fundamental analysis

Technical analysis is based on prices and volume. Technical investors believe price and volume interpret every thing in the market. They study charts for forecasting of future stock price or financial price movements. For learning technical analysis academic knowledge isn’t required, with every level you can learn it.

Fundamental analysis is a stock valuation method that uses financial and economic analysis to predict the movement of stock prices.

Financial Planning
It is also a systematic approach whereby the financial planner helps the customer to maximize his existing financial resources by utilizing financial tools to achieve his financial goals. Even though one of the most significant factors in our life is the state of our personal finances, we rarely spend time on managing them since unlike business, we are not accountable to any one for our personal financial goals and results.

Here are three basic questions that you will answer during financial planning:

* Where are you today? What is your current financial situation?
* Will you be able to get there? How do you plan to achieve your vision?
* Where do you want to get to? What is your vision of your future financial situation?


Volatility in Share Market
Volatility in the stock market refers to changes in market value of stocks, more drastic the price change, more is said to be the volatility.

Securities
Bonds and Stocks are generally called securities.

Risk Management
Risk Management is a important term in stock market investing that has to be taken care of. It refers to the actions which are taken to prevent and protect against huge monetary losses in investments in the share market.

Real Estate
Real Estates refer to land and other stuctures on it along with its rights and privileges like mineral rights or cultivation rights.

Principal
The initial investment in a company excluding all interests or dividends, if any.

Portfolio
A collection of all the stocks, bonds and cash held by an individual, a group or an institution.

Open-End-Fund
An open ended fund is a mutual fund which can be bought and sold at anytime after its been on the market without any limitations.

Maturity
Maturity is the date on which a bond, an investment contract or a loan matures and is due to renewal or repayment.