Stock-Share-Equity Market

Stock Market :- A stock market or equity market, is a private or public market for the trading of company stocks and derivatives of company stock at an agreed price, these are securities listed on a stock exchange as well as those only traded privately.

Equity :- Having equity share of a company signifies ownership in that company. if you have 1,000 shares of a company which has totally issued 10 lak shares then your ownership in that company is .01% . You can calculate it like this, Number of share you have divide by number of share issued by company then multiply by 100.

How much risk involve in equity market or stock market? Equity is most rewarded investment but it has inherent risk of capital loss. There is some kind of risk attached in equity investing :-

1. Company Specific Risk :- Investing in a company which dose not have good business prospects or its own and run by promoters with a questionable reputation or in a sector which is currently in downward trend.

2. Sector Specific Risk :- Investing in good fundamentally strong company in wrong time means in downward trend.

3. Global Risk :- Increase in global oil price which can be reason of fall in the stock market, global market sentiment, adverse change in exchange which may be not good for export oriented companies. Political upheaval, economic downtime can also be reason for fall in equity price.