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By: Ikedi Ani-okoye.

Introduction to the Stock Market

The stock market, which is also called the equity market, is used as a way for companies listed on it to raise money from those with money to invest. A person investing makes money by buying shares in two ways - the income in the form of dividends that the company pays to its shareholder and from general capital gain on shares, this is the outcome of stock market shares sold at a higher price than they were bought on the stockmarket.

What is the Stock Market FSTE 100?

The stock market is basically the name for all the shares being traded Stock markets are summarised in indices in the following countries - in the UK, the FTSE (Financial Times Stock Exchange) 100 (roughly the largest 100 companies) and the FTSE All-Share index (practically the entire market); in the USA, the Dow Jones Industrial Average and the Nasdaq index (these are 'new economy' technology stocks).

Who are the can invest in the stock market?

Despite reports that investing in the stock market is an investment for the average person aswell as the wealthy, the statistics support the opposite. In theUk Only 16% of UK shares were held by a individuals in 2000, the rest of the holders were big industries such as the banks, insurances companies, pension funds and the like.

The determining factors for the rising and falling of the stock market prices

Analyst get together to determine how productive a company is likely to be from the information that the get from each company that has enlisted it self on the stockmarket. The reports used to estimate the companies performance for stock market purposes is usually given for auditing on a quartely basis.

Factors that are good and bad for stock market investments

On a large scale, economic growth is usually seen as good development for the stock market the thinking is that higher growth leads to higher corporate profits. So news of lower unemployment or increased out put are generally seen as good for the stock market.

Factors that may effect the stock market are inflation and higher interest rates, the payment of higher interest being payed is usually take from stock market funds.

CONCLUSION

Generally the stock market is good for investments that are supported by a good economy as shares tend to take a longer period of time to rise, and when doing so they seem to emulate the state of the economy the investment is embedded in.