Various items are traded in the stock market. Such include bonds, stocks and commodities.
These securities can be traded and obtained for either short or long terms. Either security can be acquired by different bodies such as government or companies or even individuals and mutual funds.
- What are stocks?
Stocks can be defined as a share of ownership in a corporation. It is also considered as shares, equities or capital stock. These shares can either be bought or sold in a centralized market called the stock market, in order to raise money, support business activities and investments. There are different factors in determining stock share prices. Most investors evaluate prices by means of the P/E ratio or price-to-earnings ratio. These calculations are essential in the sense that they determine the effectiveness of the company’s business operation against the over-all stock market.