How Is Share Market Helpful ? | Candider
How Is Share Market Helpful ?
1st Mar 2020 3:12 pm
Business expert
The following result is obtained by our expert's opinion: Share Market is a market where secondary sales of shares of public companies are done. These shares (also known as equity) are the part of companies capital and dividend is given on these shares as a return. If the company is very profitable then there will be a higher dividend, and if the company is in loss then this may lead to even decrease in the face (actual) value of a share. In the secondary market, these shares are sold people pay higher value if they found the company will be profitable and may also pay very less value if they found a company will be in a huge loss in future. That's how people earn or loose in the share market. In the share market, profit and loss are very volatile in huge amount. The stock market plays a very vital role in the economy, rise and fall of this market show the performance of the whole industry and commerce of the country. The stock market is the primary source for any company to raise funds for business expansions. The stock market is primarily the place where these companies get listed to issue the shares and raise the fund. In case of an already listed public company, they issue more shares to the market for collecting more funds for business expansion. For the companies which are going public for the first time, they need to start with the Initial Public Offering. In both cases, these companies have to go through the stock market. This is the primary function of the stock exchange and thus they play the most important role of supporting the growth of the industry and commerce in the country.
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