Is Investing Money In Stock Market Really Benefited ?

July 17, 2009 - PRLog -- its cannot be said  that If you investing money in stock is really benefited. Stock market is a public  market for trading of co.  The size of the world stock market was estimated at about $36.6 trillion.
The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together.
Individuals  and  hedge fund traders are stock investors . Their orders usually end up with a professional at a stock exchange, who executes the order . the purpose of stock exchange to provide best market place to its sellers or buyers. The exchanges provide real-time trading information on the listed securities, facilitating price discovery. The exchanges provide real-time trading information on the listed securities, facilitating price discovery.
The stock market is one of the most important sources for company to raise money . This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market.
The financial system in most western countries has undergone a remarkable transformation. One feature of this development is disintermediation . A portion of the funds involved in saving and financing flows directly to the financial markets instead of being routed via the traditional bank lending and deposit operations.
Riskier long-term saving requires that an individual possess the ability to manage the associated increased risks. Stock prices fluctuate widely, in marked contrast to the stability of (government insured) bank deposits or bonds. This is something that could affect not only the individual investor or household, but also the economy on a large scale.
The stock market, as any other business, is quite unforgiving of amateurs. Inexperienced investors rarely get the assistance and support they need. In the period running up to the 1987 crash, less than 1 percent of the analyst's recommendations had been to sell (and even during the 2000 - 2002 bear market, the average did not rise above 5%).
Sometimes the market seems to react irrationally to economic or financial news, even if that news is likely to have no real effect on the technical value of securities itself. But this may be more apparent than real, since often such news has been anticipated, and a counterreaction may occur if the news is better) than expected.
A stock market crash is often defined as a sharp dip in share prices of equities listed on the stock exchanges. In parallel with various economic factors, a reason for stock market crashes is also due to panic. Often, stock market crashes end speculative economic bubbles.

The Stock Market and Exchange is a great alternative for the savings of people and institutions. It permits them to obtain an important profitability against other types of official markets even if it means assuming, possibly, a greater risk.
If you find that another investor is in benefit and you should follow him, its not important you will also be in benefit. You can’t apply the same pattern to all the investments. People have different kind of assets, needs and goals and, overall, different grades of tolerance with respect to risks. The first step is to coordinate your assets and liabilities.
you have to know at least with how much minimum amount of money you can count with, the grade of risk you are willing to stand your assets and liabilities are interrelated and with time they can affect each other. If with the help of competent advisors you coordinate your assets and liabilities, you will realize how they are both related and you will be able to combine with more efficiency your assets  and investments with your liabilities and resources, which will help you to obtain your financial objectives.
Like a boxer, the stock market usually tells you what it’s going to do before it happens if you pay attention to the signs. Most, but not all, stocks move with the overall trend of the market. I’m not talking necessarily about one-day bumps, but general upward and downward trends – bull markets and bear markets.
The investment would be benefited if if investor understand firstly  present trends of market . it’s important to have an idea what the general trend of the market seems to be and what the market is telling us about future trends
You can get an idea where the market is headed . price and volume are important factors of market direction . volume tells you movements of the market and price tells you directions of the market.
one of the indicators – price - to help us decide whether the market is going to continue its current trend or trying to reverse course.
Basically ,mutual funds institutional investors are consider as a volume of market who moves it . When they began moving in a direction, that’s where the market goes and you can see it in the price and volume numbers.
When there are more sellers (lower prices on higher volume) than buyers, the market is trending down. Watch for signs that the market is changing course (different price and volume than the prevailing trend), if you see more than a few of these, prepare for a change.
Uncertainty can moves the market Some market movers are obvious, while others creep up on us unseen. However, the one factor not listed above that drives the market absolutely crazy is uncertainty. The market cannot stand surprises and when there is the chance that something may change, it rattles the market.

If you have had you eye on a stock, but felt it was a little over-priced, one of these market events might just take enough wind out of its price to put it in your buy range.

To understand stock market  its also important  to know how stock prices are determined?

When deciding whether to purchase or sell stocks, investors consider the general business climate and outlook, the financial condition and prospects of the individual companies in which they are considering investing, and whether stock prices relative to earnings already are above or below traditional norms .  interest rates also influence stock prices .
But the perfect plan is to  buy stocks according to expectations about the unpredictable future, not according to current earnings.
Falling rates, conversely, often lead to higher stock prices, both because they suggest easier borrowing and faster growth, and because they make new interest-paying investments less attractive to investors.
To think  whether investing in stock market would be really benefited or not  is a question of non players in stock market
Confident is hidden requirement of investor , so be confident  while you are investing in stock market .
http://www.2stocktrading.com/

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its cannot be said that If you investing money in stock is really benefited. Stock market is a public market for trading of co. The size of the world stock market was estimated at about $36.6 trillion.