Stock market is just like the wet market or night market or Ebay

Stock market is just like the weekend market, night market or Ebay.

 

Stock market has more similarities to the market where you get the fishes, chicken and vegetables.

 

It is just a market.

 

The difference is that the sellers in the stock market do not sell you chicken, fish, pork, vegetables, or other things that you need in life.

 

The sellers in the stock market sell you shares that they own in the listed companies.

 

When you want to become a part owner of a hotel chain, you can buy the shares from the stock market.

 

Someone will be selling you the shares.

 

If nobody is selling, you have to wait for someone to sell his shares to you.

 

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When you are in the market for chicken, and vegetables, you are likely to bargain hard to get a good price.

 

You can do that in the stock market.

 

When the sellers quote you $1, you do not have to accept this offer.  You can quote your price of 90 cents when you key in the order through the online brokerage account.

 

If someone is willing to sell you the shares at 90 cents, the trade is completed.  If not, you have to return the next working day.

 

This is really very similar to the market.  Sometimes you want to buy salmon fish, and the sellers run out of salmon fish.

 

You do not always get what you want to buy or at the price that you want to buy.  A flood will drive up the price of vegetables.  A bountiful harvest will send the price down to the point that you practically get the vegetables free of charge.

 

The same thing happens in the stock market.  A bull run will send the share price very high, and yet everyone wants to get in to buy limited shares.

 

 

A market crash brings price down to a very low level, and you can buy many shares at the lowest price in 6 years.




  • scheng1

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