stock markets

October 4, 2008 11:11pm CST
the stock markets plays an important role in nation's economy.the economy has to be strong for it country and its citizens to be prosper. in financial markets stocks refer to supply of money that a company has raised.this supply comes from people who have given the company money in the hope that the company will make their money to grow.the term 'stock market' refers to the business of buying and selling stocks. when a company wants to raise funds for its further development plans,like building factories,hire more people,develop new products etc..it can raise capital by getting loan from banks.but then it would owe money.by issuing stock, a company can raise money without going into debt.people are giving money to the company to grow. not every company can issue shares.a business owned by a person or a few people cannot issue stocks. only a business corporation can issue stock. a corporation has a special legal status. owing a stock of company is the owing a part of the company.each part is known as a share.if a company has issued 100 shares and if u own 1 share then your 1% holder of that company.people who own stocks are called as stock holders,if the company runs in profits,ur money will grow.it has been proven truth that people got more money than people who deposited in banks.
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