· Definition of 'Stock'

A share is a financial apparatus that represents ownership in a company. And represents a proportionate claim on its earning. You might see a news headline that says the stock market has moved lower, or that the stock market closed up or down for the day. Investors who buy and sell stocks hope to turn a profit through that movement in stock prices.

· How does the stock market work?

The concept behind how the stock market works is very simple. The stock market enables buyers and sellers to determine prices and make trades. Buyers offer a “bid,” or the highest amount their willing to pay. The difference is called the bid-ask spread.

· Risks of Stock Market Investing

When stock market prices decline less than 10%, it's not a stock market correction. When prices fall much or more in one day, it's not like a stock market crash. A crash can trigger a recession. The history of stock market crashes shows this is a regular incident. When prices fall 20% or more, it's not as a bear market. A market lasts an average of 22 months, even some have lasted as little as three months.

· Benefits of Stock Exchange Listing

1) An exchange listing means ready for l shares held by the company's shareholders.

2) It enables the company to uplift additional funds by issuing more shares.

3) Having publicly traded shares makes it easier to set up stock plans that are necessary to attract talented employees.

4) Listed companies have greater visibility in the marketplace.

5) Listed shares can be used as currency by the company to make acquisitions in which part or all of the consideration is paid in stock.

· How do you invest in the stock market?

You can buy any stocks through a brokerage account every person who wants to buy and sell a stock can be opened a Demat account at an online broker. The broker play as the mediator between you and the stock exchanges.

These steps every investor should be followed-

1) The quickest and least expensive is to buy stocks online.

2) If you need more guidance at a reasonable price, join an investment club, which is a group of people who research and invest together.

3) A full-service broker will cost more but could be worth the price.

4) Fee-only financial advisors charge annually and provide advice on selecting investments.

· Market capitalization

Market capitalization refers to the total market value of a company's remaining shares and is calculated by multiplying these shares by the current market price of one share. For example, a company with 10 million shares selling for $100 each would have a market cap of $1 billion. The investment community uses this figure to determine a company's size. The market cap is used to determine whether a takeover candidate represents a good value or not to the acquirer.