Let's Get To Know More About The Stock Market

Hello gamers! The world today is growing with all its developments. As a gamer, it’s time for you to level up to step on a new world for your future. The stock market now cannot be underestimated anymore and is also not a gamble by looking at the ups and downs of prices. The stock market is one way for you gamers to invest for your better future.

Especially if you are currently a pro gamer who has received a lot of prizes from all your wins. Instead of using the money for less important things, it’s time for you to start considering your future. If you can get rich while farming in Mobile Legends or Genshin Impact. Then you can also get rich when farming on the stock market. Want to know how? Let’s see below.

What is the Stock Market?

If a private company wants to raise capital to ensure the growth of the company, they can do so by going public on the stock market. The process starts from the initial public offering. In practice, this means that investors take ownership of shares, by buying shares called shares, for capital.

Companies that want to go public prefer large stock exchanges such as the Nasdaq or the London Stock Exchange (LSE). However, to be accepted properly they must meet certain conditions. When a company is publicly traded, its shares are available for trading on the stock exchange.

The first exchanges began to be traded in shopping centers such as London and Amsterdam in the 16th and 17th centuries. The first stock exchange we know today is the Philadelphia Stock Exchange, which still exists today. It wasn’t until the late 18th century, when the New York Stock Exchange was formed and stocks began to be widely traded.

Prior to 1792, brokers and traders had an informal agreement to meet under Acne on Wall Street and arrange stock trading. What is now known as the Buttonwood Agreement was the beginning of modern financial trading. As markets began to regulate and technology advances, stock trading became accessible to more brokers, making markets more liquid and efficient.

Who are the Stock Market Participants?

The advent of derivatives trading has made it possible for investors to participate in the stock market without having to trade, as anyone with access to the internet can speculate on the prices of individual securities through an account with an online brokerage firm (one of the brokers we recommend is Forextime/FXTM).

Let’s see who participates in this market, because there are billions of transactions happening every day in the stock market:

1. Private Retailer

This category refers to people who buy and sell stocks worldwide based on their own prices and for the sole purpose of making a profit. Private investors make up the bulk of global equity transactions. This could be employees buying shares in the company they work for or fans buying shares in their favorite sports club to show their support, to name a few.

2. Hedge Funds

Hedge funds are also heavily involved in stock trading and usually buy shares in various companies to protect their portfolios from risk and increase their profits.

3. Competitors

A lesser known category of stock market participants are competitors who can seek influence over other companies by buying their shares.

What Affects Stock Prices?

The stock price is basically a reflection of the company’s profits and dividends paid to shareholders. In today’s globalized world, a company’s ability to generate profits, and therefore, its share price, cannot be attributed to just one factor. In fact there are many interacting variables and their net effect determines stock prices worldwide. Let’s take a look at the main influences and how they affect different industries:

1. Exchange Rate

Currency values ​​vary in value 24 hours a day. Usually, importing companies get a lot of profit when their national currency rises and their purchasing power increases.

2. World oil prices

Companies such as airlines that depend on fuel for their operations are the first to be affected by large or unexpected changes in world oil prices.

3. New Legislation

Let’s take the example of monetary policy. When a country changes its corporate tax laws, it has a direct impact on the profitability of businesses centered in that area.

4. Interest Rate

Interest rates are set by the central bank and reflect the cost of capital. For example, lower interest rates can improve equity markets.

5. Hope And News

Sometimes an event like a rate cut isn’t even possible, but the stock market can only move significantly earlier. If that doesn’t happen, the market will return to its normal trading level. This is where the phrase “buy things, sell costumes” comes from.

6. Unexpected Events

This category includes terrorist attacks and natural disasters. The September 2011 attacks caused the stock market to crash, with the Dow Jones losing up to 7% the day after the tragic event.

Although the above factors and their implications are quite simple, it should be noted that stock prices can sometimes rise simply because of positive sentiment in certain sectors. For this reason, it is important for traders to be aware of current trends. A classic example is the rapid rise of Internet shares in the dot-com era. At the same time, more traditional sectors such as mining stocks went into recession.

As with any form of investment, it is important to understand the financial risks of trading stocks. Every participant loses bids, maybe this will happen a lot from time to time. This is an unavoidable fact, so it is very important to have a strategy in place to minimize losses, perhaps by using stop losses or by limiting the amount of money you invest in individual trades.

So gamers, now you know that the stock market is very profitable, right? Let’s learn more so that you can benefit by considering the risks. Stay tuned for the latest information about games and gadgets only at Kabar Games. So you don’t miss the news, you can follow the news Instagram and Facebook accounts. Don’t forget to leave your comments!

Share :