What is Stock Market?






What is stock market?
Stock market is specific place for trading company’s shares and public can purchase or sell the share

What is Companies share?
Companies share mean most of big business like cement factory, Commercial Banks etc are need to Heavy Capital / Investment for establish in this situation Government allow to business man with rules and regulations regulated by Securities and exchange commission Pakistan to launch share in the stock market for again Capital

For example:
 if any business man wants to gain capital and he fulfill all requirement of Security Exchange of Pakistan for cement factory or need investment for said per is required 1 billion then he launch 10 million shares in the market and price Rs. 100 per share after the sold of Shares then buyer can sell and buyer can purchase easily and determined the market price in the stock market.

 

What is Economy sector?

                    Economic Sector mean business divided into different sectors because uncountable business nature in the world like textile, Energy, Banking and lots of other businesses.

 

For Example:

                   If we discuss textile business it is also a leading economic sector of world because clothes are necessary need of our life.

                   In textile Sector have its own business chain to create businesses and employments and other businesses are involve to complete the textile sector like farmer grow cotton in our land then industries buy cotton for making thread, then through thread making cloths, color the cloths are also a wast field in textile Sector.                        

What is dividend?

                    Profit earn by the stock listed company in the specific period, its distribution to share holders is called dividend.

Example

If I have 1000 shares of Habib Bank of Pakistan then Bank announce Business report of our business quarterly if bank earn profit in recent quarter then they must issued dividend to me as per share they announce in our recent Business report.                 

 

What Is a Commercial Bank?

 

          A commercial bank is leading business institution of Finance sector provides Bank Account for money deposit facility to the people and gives Cheque book for money withdrawals.

 

Bank Loan

 

                   A Commercial Banks give loan / credit to the individuals or business man for short term or long term loans if they fulfill Bank requirements / criteria but commercial bank charge services charges and also interest rate according to state bank on principal amount compound interest also be applicable in term and conditions for said loans.

 

Certificate of deposit

 

                   Certificate of Deposit means if any individual or business man deposit our money to the Commercial Bank and he wants interest on his money so in this case Commercial bank provide Certificate of Deposit to the costumer to avail interest on his deposit money.


Commercial bank Income
                   Commercial Bank earning depend on loan interest and other service charges as they claim but reality this they invest depositors money to the stock markets, real state business treasury Bill and other fix liabilities.


What is Stock Market? What is Stock Market? Reviewed by Syed Daniyal Jafri on June 17, 2020 Rating: 5

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