![]() ![]() ![]() A bear market is typified by falling stock prices, bad economic news and low investor confidence in the economy. There are more sellers than buyers and the sellers are driving price down. The opposite of a bull market is a bear market and is when prices are falling for a prolonged period of time. A bull market is typified by generally rising stock prices, high economic growth and strong investor confidence in the economy. The buyers believe that the prices will be moving higher and are known as “bulls”. Secondary market – where investors can buy and sell shares at prices that are determined by supply and demand factors.Ī bull market is a financial market where the prices of stocks are, on average, trending higher, because there are generally more buyers than sellers.Primary market – where companies raise money by issuing shares through an Initial Public Offering (IPO).The two main functions of the Sharemarket are to operate the: There is no actual physical market and all transactions are conducted electronically. In Australia, this function is carried out by the Australian Securities Exchange or ASX which is one of the world’s top 10 listed exchange groups measured by market capitalisation. The Sharemarket is the market where shares are bought or sold (traded). Sharemarket or stock market (Primary and Secondary) You have a total of 1000 ANZ shares in your portfolio, made up of two parcels. For example you may have purchased two parcels of 500 ANZ shares at different times. A parcel is a distinct lot of shares that you own. Your portfolio value is calculated by multiplying the number of shares by the market price of each share and adding all of these amounts together. Your portfolio is your total shareholdings and is generally shown as a listing of each stock owned plus the number of shares held in each stock. For example, if you own ANZ shares, the number of shares you own determines the extent of your ownership or equity in the stock ANZ. Shares are the smallest unit of division of ownership in a company. Stock is the total of all shares on issue for a particular company. However, each word does have a slightly different meaning. The words stock and share are often used interchangeably. Before you invest in the sharemarket it is important to understand some of the more common terms that are used.
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