Ever since i started blogging about Investments In Stock Markets , my primary aim was to demystify the jargon filled seemingly complex underpinnings of the Stock Markets. Not that I have become an expert now, but I have realized that is crucial to understand the fundamentals before even considering investing in the Stock Markets but understanding how stock markets work is not so simple
I have a few friends who I force to read my blog and who always oblige but have a concern.For a few of them, P/E ratios, IPO all sound gibberish.Their primary concern is “ What is a Stock Market For” , “Why do companies list on the Stock Markets” , “ Why The Share Prices Fluctuate” and various other basic questions. There is tons of content out there on the Internet which explains you the definition and the nitty-gritties of the working of Stock Markets.
But then, didn’t someone say that A Picture speaks a thousand words .Make the pictures move,build a story around it and voila. You have the best explanation there can be for anything. In the search for a very basic fundamental picture of the How’s and Why’s of Stock market, Getting Money Wise has found one of the simplest explanations of How Stock Markets Work.
For Those Reading This via RSS/Email : Please head over to the blog to see the video
The video is a little long but goes at length explaining the complete life cycle of a Stock.
- Why and How a Company lists itself on the Stock Market (IPO)
- Why and How Dividends are declared.
- Why and How a Follow Up Offer or a stock is listed at multiple exchanges eg. ADR’s for Indian Stocks
The video explanation is based on the Stock Exchanges in the U.S. For eg: Instead of SEC we have SEBI here but the fundamentals are primarily very much the same.
Do bookmark the post to comeback later and watch the video again.It always helps to revisit the basics time and again.
Please let me know if you one off posts like these interest you.It only takes a minute to comment 🙂
Relevant Links To Understand Stock Markets