Market share, in strategic management and marketing is, according to Carlton O'Neal, the percentage or proportion of the total available

market or market segment that is being serviced by a company. It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. It is generally necessary to commission market research (generally desk/secondary research) to determine , although sometimes primary research) to estimate the total market size and a company's market share. Increasing market share is one of the most important objectives of business. The main advantage of using market share as a measure of business performance is that it is less dependent upon macroenvironmental variables such as the state of the economy or changes in tax policy. However, increasing market share may be dangerous for makers of fungible hazardous products, particularly products sold into the United States market, where they may be subject to market share liability. A stock market or equity market is a public market (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion USD at the beginning of October 2008.[1] The total world derivatives market has been estimated at about $791 trillion face or nominal value,[2] 11 times the size of the entire world economy.[3] The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on the event not occurring). Many such relatively illiquid securities are valued as marked to model, rather than an actual market price. 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. The largest stock market in the United States, by market cap, is the New York Stock Exchange, NYSE. In Canada, the largest stock market is the Toronto Stock Exchange. Major European examples of stock exchanges include the London Stock Exchange, Paris Bourse, and the Deutsche Börse. Asian examples include the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the Shanghai Stock Exchange, and the Bombay Stock Exchange. In Latin America, there are such exchanges as the BM&F Bovespa and the BMV.

Contents
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1 Trading

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2 Market participants 3 History 4 Importance of stock market o 4.1 Function and purpose o 4.2 Relation of the stock market to the modern financial system o 4.3 The stock market, individual investors, and financial risk o 4.4 United States stock market returns o 4.5 The behavior of the stock market o 4.6 Irrational behavior o 4.7 Crashes 5 Stock market index 6 Derivative instruments 7 Leveraged strategies o 7.1 Short selling o 7.2 Margin buying 8 New issuance 9 Investment strategies 10 Taxation 11 See also 12 References 13 Further reading 14 External links

[edit] Trading

The London Stock Exchange. Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order. Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers

Actual trades are based on an auction market model where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. One or more NASDAQ market makers will always provide a bid and ask price at which they will always purchase or sell 'their' stock. especially for so-called "program trading". on a first-come-firstserved basis if there are multiple bidders or askers at a given price. Stockbrokers met on the trading floor or the Palais Brongniart. The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers. computers play an important role. facilitating price discovery. (Buying or selling at market means you will accept any ask price or bid price for the stock. Orders enter by way of exchange members and flow down to a floor broker. [4] The Paris Bourse. It was automated in the late 1980s. The New York Stock Exchange. However. it consisted of an open outcry exchange. Once a trade has been made the details are reported on the "tape" and sent back to the brokerage firm. The process is similar to the New York Stock Exchange. where all of the trading is done over a computer network. which then notifies the investor who placed the order. who goes to the floor trading post specialist for that stock to trade the order. If a spread exists. The New York Stock Exchange is a physical exchange. Prior to the 1980s. The other type of stock exchange is a virtual kind. the CATS trading system was introduced. now part of Euronext. no trade immediately takes place—in this case the specialist should use his/her own resources (money or stock) to close the difference after his/her judged time. Although there is a significant amount of human contact in this process. also referred to as a listed exchange — only stocks listed with the exchange may be traded. and the order matching process was fully automated.) When the bid and ask prices match. composed of a network of computers where trades are made electronically via traders. The exchanges provide realtime trading information on the listed securities. In 1986.simultaneously. The NASDAQ is a virtual listed exchange. is an order-driven. . buyers and sellers are electronically matched. thus providing a marketplace (virtual or real). a sale takes place. The specialist's job is to match buy and sell orders using open outcry. respectively. electronic stock exchange.

worldwide. the government was responsible for "fixed" (and exorbitant) fees being markedly reduced for the 'small' investor. buyers and sellers were individual investors. with long family histories (and emotional ties) to particular corporations. according to data compiled by Boston-based Aite Group LLC.g. pension funds. markets have become more "institutionalized". brokers pay the exchanges less in fees and capture a bigger share of the $11 billion a year that institutional investors pay in trading commissions as well as the surplus of the century had taken place. buyers and sellers are largely institutions (e.[5] Now that computers have eliminated the need for trading floors like the Big Board's. Securities firms. such as wealthy businessmen. Goldman Sachs Group Inc. a brokerage-industry consultant. [edit] Market participants A few decades ago. That share probably will increase to 18 percent by 2010 as more investment banks bypass the NYSE and NASDAQ and pair buyers and sellers of securities themselves. the balance of power in equity markets is shifting. hedge funds. index funds. By bringing more orders in-house.. (They then went to 'negotiated' fees. Over time. but only for large institutions. and Credit Suisse Group. mutual funds. already steer 12 percent of U. investor groups.[citation needed] [edit] History .[citation needed]) However. The rise of the institutional investor has brought with it some improvements in market operations.S.[citation needed]. insurance companies. security trades away from the exchanges to their internal systems. corporate governance (at least in the West) has been very much adversely affected by the rise of (largely 'absentee') institutional 'owners'. banks and various other financial institutions). led by UBS AG. Thus. but only after the large institutions had managed to break the brokers' solid front on fees. active trading (especially in large blocks of securities) have moved away from the 'active' exchanges.From time to time. where clients can move big blocks of stock anonymously. exchange-traded funds.

the Dutch East India Company issued the first share on the Amsterdam Stock Exchange. until then. debt-equity swaps. The Dutch later started joint stock companies. but actually. and in 1309 they became the "Brugse Beurse". Verona. Venetian bankers began to trade in government securities. much as we know them". with the world's biggest market being in the United States. In 1602. as most of the merchants of that period. South Korea and the Netherlands. Genoa and Florence also began trading in government securities during the 14th century. Japan. Germany.[8] . India. In the middle of the 13th century. France. as their primary place for trading.[6] the Van der Beurze had Antwerp. option trading. Because these men also traded with debts.Established in 1875. Canada. institutionalizing what had been. The Amsterdam Stock Exchange (or Amsterdam Beurs) is also said to have been the first stock exchange to introduce continuous trade in the early 17th century. the family Van der Beurze had a building in Antwerp where those gatherings occurred. China. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. United Kingdom. It was the first company to issue stocks and bonds. A common misbelief is that in late 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurze. the Bombay Stock Exchange is Asia's first stock exchange. The idea quickly spread around Flanders and neighboring counties and "Beurzen" soon opened in Ghent and Amsterdam. they could be called the first brokers. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. an informal meeting. In 12th century France the courratiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks.[7] There are now stock markets in virtually every developed and most developing economies.or losses. Bankers in Pisa. which let shareholders invest in business ventures and get a share of their profits . unit trusts and other speculative instruments. The Dutch "pioneered short selling. merchant banking.

The stock market is one of the most important sources for companies to raise money. tend to be associated with increased business investment and vice versa. . and can influence or be an indicator of social mood. In fact. on the smooth operation of financial system functions. for instance. Therefore. Financial stability is the raison d'être of central banks. Exchanges also act as the clearinghouse for each transaction. An economy where the stock market is on the rise is considered to be an up-and-coming economy. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. or raise additional capital for expansion by selling shares of ownership of the company in a public market. and guarantee payment to the seller of a security. in general. This allows businesses to be publicly traded. compared to other less liquid investments such as real estate. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities.[edit] Importance of stock market [edit] Function and purpose The main trading room of the Tokyo Stock Exchange. central banks tend to keep an eye on the control and behavior of the stock market and. meaning that they collect and deliver the shares. Share prices also affect the wealth of households and their consumption. Rising share prices. This is an attractive feature of investing in stocks. the stock market is often considered the primary indicator of a country's economic strength and development. History has shown that the price of shares and other assets is an important part of the dynamics of economic activity.where trading is currently completed through computers.

etc. permitting a higher proportion of shares to bonds. [citation needed] [edit] Relation of the stock market to the modern financial system The financial system in most western countries has undergone a remarkable transformation. the United States. flows directly to the financial markets instead of being routed via the traditional bank lending and deposit operations. Japan and other developed nations. but rather only short-term profits to American business men and the Chinese. compared to less than 20 percent in the 2000s. either directly or through mutual funds. A portion of the funds involved in saving and financing. hedge funds. although. The major part of this adjustment in financial portfolios has gone directly to shares but a good deal now takes the form of various kinds of institutional investment for groups of individuals. Statistics show that in recent decades shares have made up an increasingly large proportion of households' financial assets in many countries. such as the European Union.The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment. when the foreign company has a presence in the new market. For example. This discretion has insulated Canada to some degree to worldwide financial conditions. American stock markets see more unrestrained acceptance of any firm than in smaller markets. The trend towards forms of saving with a higher risk has been accentuated by new rules for most funds and insurance. e. has been an important component of this process. Canada's largest stock exchange. insurance investment of premiums. In the 1970s. Chinese firms that possess little or no perceived value to American society profit American bankers on Wall Street. One feature of this development is disintermediation. as they reap large commissions from the placement. deposit accounts and other very liquid assets with little risk made up almost 60 percent of households' financial wealth.g. and financial risk . the trend has been the same: saving has moved away from traditional (government insured) bank deposits to more risky securities of one sort or another [edit] The stock market. mutual funds. In order for the stock markets to truly facilitate economic growth via lower costs and better employment. In this way the financial system contributes to increased prosperity. An important aspect of modern financial markets.. However. however. is absolute discretion. The general public's heightened interest in investing in the stock market. including the stock markets. pension funds. in Sweden. Similar tendencies are to be found in other industrialized countries. these companies accrue no intrinsic value to the long-term stability of the American economy. there are very few large foreign corporations listed on the Toronto Stock Exchange TSX. For example. great attention must be given to the foreign participants being allowed in. Conversely. this can benefit the market's citizens. individual investors. In all developed economic systems. as well as the Chinese company which yields funds to invest in China.

the noise level in the stock market rises. With each passing year. immersed in chat rooms and message boards. analysts. Stock prices fluctuate widely. This is something that could affect not only the individual investor or household. At the same time.4 9. financial writers.4 Average Annual Return % Average Compounded Annual Return % 17.2 2. but also the economy on a large scale.1 6.6 3. Sometimes there appears to be no rhyme or reason to the market. This is a quote from the preface to a published biography about the long-term valueoriented stock investor Warren Buffett. individual investors.1 8. real estate and collectables). Stock prices skyrocket with little reason. i. in marked contrast to the stability of (government insured) bank deposits or bonds.8 8.3 3.4 0. are exchanging questionable and often misleading tips. Television commentators.e.000 from seven limited partners consisting of Buffett's family and friends. This is certainly more important now that so many newcomers have entered the stock market. investors find it increasingly difficult to profit.Riskier long-term saving requires that an individual possess the ability to manage the associated increased risks.1 1. Yet.8 2.4 1. and people who have turned to investing for their children's education and their own retirement become frightened.5 0..9 7.5 3. only folly.7 5. The following deals with some of the risks of the financial sector in general and the stock market in particular.1 4.0 [edit] The behavior of the stock market . then plummet just as quickly. despite all this available information.4 6.7 1. and market strategists are all overtaking each other to get investors' attention. [edit] United States stock market returns Years to June 30. Over the years he has built himself a multi-billion-dollar fortune.6 3. or have acquired other 'risky' investments (such as 'investment' property.[9] Buffett began his career with $100. The quote illustrates some of what has been happening in the stock market during the end of the 20th century and the beginning of the 21st century. and $100. 2010 1 3 5 10 15 20 30 40 45 50 60 17.0 8.

a study of the fifty largest one-day share price movements in the United States in the post-war period seems to confirm this.) Over-reactions may occur—so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. From experience we know that investors may 'temporarily' move financial prices away from their long term aggregate price 'trends'.6 percent—the largest-ever one-day fall in the United States. (But this largely theoretic academic viewpoint—known as 'hard' EMH—also predicts that little or no trading should take place.[10] . when the Dow Jones index plummeted 22. only changes in fundamental factors. although very rarely.) The 'hard' efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987.NASDAQ in Times Square. ought to affect share prices beyond the short term. According to one interpretation of the efficient-market hypothesis (EMH). profits or dividends. negative or down trends are referred to as bear markets. where random 'noise' in the system may prevail. (But note that such events are predicted to occur strictly by chance . having priced in all public knowledge.[10] This event demonstrated that share prices can fall dramatically even though. such as the outlook for margins.) It seems also to be the case more generally that many price movements (beyond that which are predicted to occur 'randomly') are not occasioned by new information. New York City. (Positive or up trends are referred to as bull markets. contrary to fact. to this day. since prices are already at or near equilibrium. it is impossible to fix a generally agreed upon definite cause: a thorough search failed to detect any 'reasonable' development that might have accounted for the crash. Economists continue to debate whether financial markets are 'generally' efficient.

the probabilities are known and largely independent of the investment decisions of the different players. just noise. The stock market. in any of its current forms.) In the present context this means that a succession of good news items about a company may lead investors to overreact positively (unjustifiably driving the price up). such as stop-loss limits and Value at Risk limits. as with any other business. so that by summer of 2002. In one paper the authors draw an analogy with gambling. some research has shown that changes in estimated risk. (Something like seeing familiar shapes in clouds or ink blots. In times of market stress. the average did not rise above 5%).2002 bear market.[11][12] Other research has shown that psychological factors may result in exaggerated (statistically anomalous) stock price movements (contrary to EMH which assumes such behaviors 'cancel out'). would not be strictly applicable). A period of good returns also boosts the investor's self-confidence.e.. In the run up to 2000. predictions of a DOW average below 5000 were quite common. An example with which one may be familiar is the reluctance to enter a restaurant that is empty. Inexperienced investors rarely get the assistance and support they need. but only that market participants not be able to systematically profit from any momentary market 'inefficiencies'.2002 bear market.[14] In normal times the market behaves like a game of roulette. less than 1 percent of the analyst's recommendations had been to sell (and even during the 2000 . But the best explanation seems to be that the distribution of stock market prices is non-Gaussian (in which case EMH. reducing his (psychological) risk threshold. Moreover. (And later amplified the gloom which descended during the 2000 . with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so-called new economy stock market. however. nontrending).[13] Another phenomenon—also from psychology—that works against an objective assessment is group thinking. and often will perceive a pattern in what is. many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer.However. The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically. the game becomes more like poker (herding behavior takes over). people generally prefer to have their opinion validated by those of others in the group. In the period running up to the 1987 crash. a 'soft' EMH has emerged which does not require that prices remain at or near equilibrium. and the use of certain strategies. theoretically could cause financial markets to overreact. it is not easy to stick to an opinion that differs markedly from that of a majority of the group. while EMH predicts that all price movement (in the absence of change in fundamental information) is random (i. the media amplified the general euphoria. For instance.) [edit] Irrational behavior . Psychological research has demonstrated that people are predisposed to 'seeing' patterns. in fact. As social animals. is quite unforgiving of amateurs. Various explanations for such large and apparently nonrandom price movements have been promulgated.

Emotions can drive prices up and down. Behaviorists argue that investors often behave 'irrationally' when making investment decisions thereby incorrectly pricing securities. far higher than the historical average. rumors. which. Therefore. since often such news has been anticipated. "The stock market has not come down to historical levels: the price-earnings ratio as I define it in this book is still. in turn. and the reasons for buying and selling are generally obscure. Please improve this article and discuss the issue on the talk page. making the stock market behavior difficult to predict. as more experienced investors (especially the hedge funds) quickly rally to take advantage of even the slightest. Earnings. 2008. 2d ed. . .[16] [edit] Crashes The examples and perspective in this section may not represent a worldwide view of the subject. euphoria and mass panic. (March 2009) Robert Shiller's plot of the S&P Composite Real Price Index. Dividends. momentary hysteria. Over the short-term. at this writing [2005]. but generally only briefly. stocks and other securities can be battered or buoyed by any number of fast market-changing events.[17] In the preface to this edition. People still place too much confidence in the markets and have too strong a belief that paying attention to the gyrations in their investments will someday . leaving the prices of stocks rationally determined. people are generally not as rational as they think. Shiller warns. from Irrational Exuberance. are opportunities to make money. and a counterreaction may occur if the news is better (or worse) than expected. in the mid-20s.Sometimes the market seems to react irrationally to economic or financial news. which causes market inefficiencies. this occurred on October 13. . But this may be more apparent than real. the whole notion of EMH is that these nonrational reactions to information cancel out. The Dow Jones Industrial Average biggest gain in one day was 936.[15] However. the stock market may be swayed in either direction by press releases. and Interest Rates.42 points or 11 percent. even if that news is likely to have no real effect on the fundamental value of securities itself.

Data from different twenty year periods is color-coded as shown in the key. reinvesting dividends. The horizontal axis shows the real price-earnings ratio of the S&P Composite Stock Price Index as computed in Irrational Exuberance (inflation adjusted price divided by the prior ten-year mean of inflation-adjusted earnings). Long-term investors would be well advised. and the Stock Market Crash of 2008. An increasing number of people are involved in the stock market. and so they do not make conservative preparations for possible bad outcomes. Shiller states that this plot "confirms that long-term investors—investors who commit their money to an investment for ten full years—did do well when prices were low relative to earnings at the beginning of the ten years. . a reason for stock market crashes is also due to panic and investing public's loss of confidence. individually. as it has been recently.1."[17] Main article: Stock market crash A stock market crash is often defined as a sharp dip in share prices of equities listed on the stock exchanges. The vertical axis shows the geometric average real annual return on investing in the S&P Composite Stock Price Index. Often. See also ten-year returns. the Dotcom bubble of 2000. stock market crashes end speculative economic bubbles. There have been famous stock market crashes that have ended in the loss of billions of dollars and wealth destruction on a massive scale. and get into the market when it is low. the Black Monday of 1987.[17] source). and selling twenty years later. There have been a number of famous stock market crashes like the Wall Street Crash of 1929. to lower their exposure to the stock market when it is high. In parallel with various economic factors. the stock market crash of 1973–4.make them rich." Price-Earnings ratios as a predictor of twenty-year returns based upon the plot by Robert Shiller (Figure 10. especially since the social security and retirement plans are being increasingly privatized and linked to stocks and bonds and other elements of the market.

Computer systems were upgraded in the stock exchanges to handle larger trading volumes in a more accurate and controlled manner. Australia 41. The crash began in Hong Kong and quickly spread around the world.8%.2PM halt for one hour after 2PM close for the day any time during day close for the day % drop 10% drop 10% drop 10% drop 20% drop 20% drop 20% drop 30% drop [edit] Stock market index Main article: Stock market index . Another famous crash took place on October 19. 1929 on Black Thursday.2:30PM half-hour halt after 2:30PM market stays open before 1PM halt for two hours 1PM .5%. namely. By the end of October. This event raised questions about many important assumptions of modern economics. Black Monday itself was the largest one-day percentage decline in stock market history the Dow Jones fell by 22.5%. The New York Stock Exchange and the Chicago Mercantile Exchange introduced the concept of a circuit breaker. trading in stock exchanges worldwide was halted. Spain 31%.4%. and Canada 22. It was the beginning of the Great Depression. stock markets in Hong Kong had fallen 45.6% in a day. For some time after the crash. The crash in 1987 raised some puzzles-–main news and events did not predict the catastrophe and visible reasons for the collapse were not identified. The Dow Jones Industrial lost 50% during this stock market crash. since the exchange computers did not perform well owing to enormous quantity of trades being received at one time. This halt in trading allowed the Federal Reserve system and central banks of other countries to take measures to control the spreading of worldwide financial crisis. The circuit breaker halts trading if the Dow declines a prescribed number of points for a prescribed amount of time. 1987 – Black Monday. the theory of market equilibrium and the hypothesis of market efficiency. the theory of rational human conduct. stock options and the futures market. the United Kingdom 26. which followed Terrible Thursday—the starting day of the stock market crash in 1929. The names “Black Monday” and “Black Tuesday” are also used for October 28–29.68%. the United States 22. 1929.One of the most famous stock market crashes started October 24. • New York Stock Exchange (NYSE) circuit breakers[18] time of drop close trading for before 2PM one hour halt 2PM . In the United States the SEC introduced several new measures of control into the stock market in an attempt to prevent a re-occurrence of the events of Black Monday. The SEC modified the margin requirements in an attempt to lower the volatility of common stocks.

stock index and stock options. e. the S&P. The practice of naked shorting is illegal in most (but not all) stock markets.. hoping for the price to fall. [edit] Short selling Main article: Short selling In short selling. [edit] Leveraged strategies Stock that a trader does not actually own may be traded using short selling. making money if the price fell in the meantime and losing money if it rose. derivatives may be used to control large blocks of stocks for a much smaller amount of money than would be required by outright purchase or sale. margin buying may be used to purchase stock with borrowed funds. the trader borrows stock (usually from his brokerage which holds its clients' shares or its own shares on account to lend to short sellers) then sells it on the market. Hence most markets either prevent short selling or place restrictions on when and how a short sale can occur. The trader eventually buys back the stock.g.The movements of the prices in a market or section of a market are captured in price indices called stock market indices. equity swaps. Some examples are exchange-traded funds (ETFs)." This strategy may also be used by unscrupulous traders in illiquid or thinly traded markets to artificially lower the price of a stock. As all of these products are only derived from stocks. [edit] Margin buying Main article: margin buying . they are sometimes considered to be traded in a (hypothetical) derivatives market. single-stock futures. Such indices are usually market capitalization weighted. the FTSE and the Euronext indices. or. and stock index futures. Exiting a short position by buying back the stock is called "covering a short position. [edit] Derivative instruments Main article: Derivative (finance) Financial innovation has brought many new financial instruments whose pay-offs or values depend on the prices of stocks. or traded overthe-counter. with the weights reflecting the contribution of the stock to the index. of which there are many. The constituents of the index are reviewed frequently to include/exclude stocks in order to reflect the changing business environment. rather than the (hypothetical) stock market. These last two may be traded on futures exchanges (which are distinct from stock exchanges—their history traces back to commodities futures exchanges).

and IPOs in Europe. In the United States. (Upon a decline in the value of the margined securities additional funds may be required to maintain the account's equity. A margin call is made if the total value of the investor's account cannot support the loss of the trade. Henry and Ed . Most industrialized countries have regulations that require that if the borrowing is based on collateral from other stocks the trader owns outright. Before that. Technical analysis studies price actions in markets through the use of charts and quantitative techniques to attempt to forecast price trends regardless of the company's financial prospects. Fundamental analysis refers to analyzing companies by their financial statements found in SEC Filings.) Regulation of margin requirements (by the Federal Reserve) was implemented after the Crash of 1929. and with or without notice the margined security or any others within the account may be sold by the brokerage to protect its loan position. One example of a technical strategy is the Trend following method. the margin requirements have been 50% for many years (that is. a 29. from $ 9 billion to $39 billion. "How do I make money investing?" There are many different approaches.8% increase over the $389 billion raised in 2003. two basic methods are classified as either fundamental analysis or technical analysis. but then selling them (before the three-days are up) and using part of the proceeds to make the original payment (assuming that the value of the stocks has not declined in the interim). business trends. etc. the trader borrows money (at interest) to buy a stock and hopes for it to rise. [edit] Investment strategies Main article: Stock valuation One of the many things people always want to know about the stock market is. speculators typically only needed to put up as little as 10 percent (or even less) of the total investment represented by the stocks purchased. general economic conditions. Other rules may include the prohibition of free-riding: putting in an order to buy stocks without paying initially (there is normally a three-day grace period for delivery of the stock). Initial public offerings (IPOs) by US issuers increased 221% with 233 offerings that raised $45 billion.In margin buying. used by John W. you need to put up $500. if you want to make a $1000 investment. and there is often a maintenance margin below the $500). it can be a maximum of a certain percentage of those other stocks' value. The investor is responsible for any shortfall following such forced sales. [edit] New issuance Main article: Thomson Financial league tables Global issuance of equity and equity-related instruments totaled $505 billion in 2004. Middle East and Africa (EMEA) increased by 333%.

Seykota. [edit] Taxation Main article: Capital gains tax According to much national or state legislation. since World War II). has averaged nearly 10%/year. one holds a weighted or unweighted portfolio consisting of the entire stock market or some segment of the stock market (such as the S&P 500 or Wilshire 5000). compounded annually. which uses price patterns. among other reasons. Taxes are charged by the state over the transactions. The principal aim of this strategy is to maximize diversification. many choose to invest via the index method. or that tax free stock market operations are useful to boost economic growth. However. it could be assumed that taxation is already incorporated into the stock price through the different taxes companies pay to the state. minimize taxes from too frequent trading. In this method. these fiscal obligations may vary from jurisdiction to jurisdiction because.S. Additionally. dividends and capital gains on the stock market. utilizes strict money management and is also rooted in risk control and diversification. in the U. and ride the general trend of the stock market (which. in particular in the stock exchanges.. a large array of fiscal obligations are taxed for capital gains. [edit] See also • • • • • • • • • • • • Balance sheet Dead cat bounce Modeling and analysis of financial markets Shareholders' equity Slippage Stock exchange Stock investor Stock market bubble Stock market cycles Stock market data systems Stock market index Trader (finance) US specific: • • • Nasdaq NASDAQ-100 Securities regulation in the United States Lists: .

with an option to be reviewed and modified from time-to-time. The index calculation is based on the 'Free-float Market Capitalization' methodology. These securities are further listed on a stock exchange. Under the Securities Contracts (Regulation) Act. When it started. 1956. it was just an association of persons but with the recognition it got transferred to a corporate and demutualised entity. the association got its recognition as a stock exchange in 1956. It was in 1875 that the Indian Share Market first started functioning. only to become the Bombay Stock Exchange (BSE) later on. If someone wants to know about the history of the India share market.• • • • • List of recessions List of stock exchanges List of market opening times List of stock market crashes List of stock market indices Indian Share Market Last Updated on 05-03-2010 A Share market/stock markets is an open market for fiscal operations such as trading of a firm's share and derivatives at a fixed cost. all expected to touch 20K by 2010. It is an index which comprises of 30 financially sound company scrips. The first share trading association in India was known as the Native Share and Stock Broker's Association. • • • • Trading items in Bombay Stock Exchange Equity or Shares Derivatives (Futures and Options) Debt Instruments The main index of BSE is known as the BSE SENSEX or simply SENSEX (Sensitivity Index). But then volatility has its important role to spoil the entire game. Main components of Indian Share Market Bombay Stock Exchange (BSE) Bombay Stock Exchange is known to be the oldest stock exchange in the entire Asian region. This trading association started off its operations with around 318 members.000 mark. Currently the Sensex is hovering around the 17. Leading bourses like the Dow-Jones also follow this methodology. it becomes synonymous with the history of the Bombay Stock Exchange. National Stock Exchange (NSE) . A Share market does not offer any corporeal service and is not a separately owned business entity. It started functioning in 1875 with the name 'The Native Share and Stock Broker's Association'.

. it will only increase if there are no external aspects influencing it. One can trade for a short period of time or even a lengthy span. The market capitalisation the National Stock Exchange touched about $921. It helps you to see 'fast' cash if the market is in robust mood and helps in fast liquidation. and are all transparent. The transactions are carried on with speed.31 billion at the end of May 2009. It comprises of 50 diversified benchmark Indian company scrips and is constructed on the basis of weighted average market capitalization method. efficiency. The risk management system of the National Stock Exchange is world class and can be considered as the benchmark for other bourses. it is advisable not to block your hard earned money in already flourishing Sensex and NIFTY. 1956. develops regulatory norms and helps in the development of the securities market in India. Time of trading involved spans from small to big. Why to invest in Indian share market ? • • • An investor does not require a lot of money to start investing in India share market unlike buying property and paying off a monthly mortgage.National Stock Exchange (NSE) is considered to be the leader in the stock exchange scenario in terms of the total volume traded. The leading index of NSE is known as Nifty 50 or just Nifty. The National Stock Exchange received the recognition of a stock exchange in July 1993 under Securities Contracts (Regulation) Act. It is better to wait for market bottom trend and then purchase shares at lower cost in order to trade it later. Essential rules of Indian Share Market • • • Whenever share market is at its crest it is bound to dip at some point of time. If the share market is down. The products that are traded in the National Stock Exchange are:• • • • • Equity or Share Futures (both index and stock) Options (Call and Put) Wholesale Debt Market Retail Debt Market NSE has a fully automated screen based trading system which is known as the NEAT system. Unlike the common belief of investing in booming share market. Regulatory Authority of Indian Share Market SEBI or Securities and Exchange Board of India is the market watchdog and has the responsibility of protecting the investors' interests.

Update yourself on the prevailing market conditions Whenever market witness an upward trend always purchase first and then sell the securities. This metric is used to give a general idea of the size of a company to its market and its competitors. You can also consider a balanced or debt fund if you have restrained budget. Even if they are not willing to offer you considerable gains then its time to get rid of them are invest your money in productive schemes. Do not consider the shares based on layman's advice. Seek the advice of professionals who will not only provide you tips on best investment options but also on favorable market conditions. If you have allocated more than half of your investments in equity. National Savings Certificates and post office deposits. then stick to your plan. Judge the firm by its past records and assess it personally. As the total market for a product or service grows. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. Market Share What Does Market Share Mean? The percentage of an industry or market's total sales that is earned by a particular company over a specified time period. a company that is maintaining its market share is . Stride carefully and invest in shares that you are comfortable investing in. and when the market dips always buy later and sell first. Do not surpass that pre-decided perimeter and believe in the performance of the market. Investopedia explains Market Share Investors look at market share increases and decreases carefully because they can be a sign of the relative competitiveness of the company's products or services. Diversify your shares buy investing in different sectors. Take the advice of the fund manager who manages that specific fund. Tips on investing intelligently in Indian Share Market • • • • Consider selling the shares which you have bought long time back and are indicating gains.• • • • The excellent time for investment is when the market is low keeping the basics in consideration. Also consider investing in equity funds and to stabilize your equity investments invest a part in fixed income options like the bonds. Public Provident Fund.

hi.atdmt.COGS Market Saturation Micky Arison Net Sales Operating Income Revenue Per Employee Revenue Per User Top Line More Related Terms <script language="JavaScript" type="text/javascript"> document.com/trading/ L24/1091432281/x30/Investo/IPFX901000006_300_TRA_100901/IPFX901_300_TRA_ 2010-09-01.wi. Market share increases can allow a company to achieve greater scale in its operations and improve profitability.ads/investopedia.300.com/FXM/view/nvstaeng0040000845fxm/direct.com/RealMedia/ads/click_lx.atdmt.ads/investopedia.wi.hi.300.300.investopedia.hi. Investors can obtain market share data from various independent sources (such as trade groups and regulatory bodies).wi.com/FXM/go/nvstaeng0040000845fxm/direct.250/01 /" /></a></noscript> Related Links • Great Expectations: Forecasting Sales Growth .250/01 /"/></a>').250/01/" target="_blank"><img border="0" src="http://view. Filed Under: Financial Theory.com/FXM/go/nvstaeng0040000845fxm/direct.hi. A company that is growing its market share will be growing its revenues faster than its competitors.growing revenues at the same rate as the total market. although some industries are harder to measure with accuracy than others.com/RealMedia/ads/click_lx.atdmt. Companies are always looking to expand their share of the market. Stocks Related Terms • • • • • • • • • • • Best Of Breed Blue Ocean Cost Of Goods Sold . This calculation is sometimes done over specific countries such as Canada market share or US market share. or through advertising. </script><noscript><a href="http://ops.com/trading/ L24/1091432281/x30/Investo/IPFX901000006_300_TRA_100901/IPFX901_300_TRA_ 2010-09-01.write('<a href="http://ops. and often from the company itself.atdmt.unless you ask the right questions. Statistics.html/30745465636b7937355063414261336a? http://clk.Predicting sales growth can be something of a black art . lowering prices.com/FXM/view/nvstaeng0040000845fxm/direct.250/01/" target="_blank"><img src="http://view. in addition to trying to grow the size of the total market by appealing to larger demographics.html/30745465636b7937355063414261336a? http://clk.wi.investopedia. .300.

How Investors Can Screen For Stock Ideas . Why do companies merge with or acquire other companies? Microeconomics .Learn how to use revenue and expenses.Find out why an industry's "little guys" can be big winners.Find out which companies collapsed after merging. to break down and analyze a company. .Find out how to pick your own investments like a pro. Understanding The Income Statement . Selecting A Second-Tier Company . A must for all investors.Learn this easy-to-understand technique of analyzing a company's financial statements and reports.• • • • • • • • Biggest Merger and Acquisition Disasters . among other factors.This tutorial teaches the basics of one of the most important economic topics. Introduction To Fundamental Analysis . Where Top Down Meets Bottoms Up .Find the investing "sweet spot" by combining these two styles.

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