SHARE

MARKET
- OINDRI MANDAL
WHAT IS IT?
•A LARGE network

•People buy and sell parts of a company - Shares

Value of
•Based on their belief - how the company might do in the future share bought

•Later sell it to another individual/party Making a profit/loss

•Example: NYSE, Nasdaq

ADVANTAGES -
INDIVIDUAL COMPANY

• Earn quick returns •Stronger presence in the market

• Higher capital gain •Expand business

• Dividend income •Deferred taxes

DISADVANTAGES -
INDIVIDUAL COMPANY
• Risk of losing investment •Higher risk factor

• Dividend amount not fixed •Sell stocks Kill profile

• Expensive to maintain a share •Ownership at Stake

 WALL STREET CRASH!
• America had become rich by the end of WW-II, by giving loans to Britain and France and
receiving it back with huge sums of interests.
•There was a huge boom in the American economy.
•Most Americans had a job and received a stable income.
This period is known as
•Soon they began investing in the stock market to earn quick returns.
the ‘Great Depression’
•The share market in America operated as a Laissez fair economy.
in world history
•There was a sudden hike in prices of the shares in the share market.
•A scramble to sell shares.
The Wall Street crashed
•Everyone wanted to sell but no one wanted to buy
on 24th October 1920
HOW DOES A CRASH OCCUR?
Economy does poorly Apprehension of loss in minds of

CRASH!
the investors

Fall in prices Everyone wants to sell; no one wants to buy

Company unable to sustain Unemployment

INTERESTING…

• A bull market - prices of

assets/ securities rise
continuously

• A bear market – prices

of assets/ securities
decline steadily