One of the most unpredictable things in the whole wide world is probably the stock market. It can go high one moment and go low the next moment. The share market or the stock market is something that involves hoards of buyers and sellers. A share market or a stock market represents the accumulation of buyers and sellers of various stock exchanges. Almost every country in the world has its own legally established forum whereby such stock exchanges take place. Every government judiciously regulates its stock market.
What Is A Stock Exchange?
The term stock exchange refers to the platform that facilitates the buying and selling of stocks or shares. It is through these stock exchanges that various stockbrokers or traders can sell or buy stocks. Many banks, organizations, or large companies nowadays indulge in stock exchanges. Companies and organizations list their stocks up on the online platform, increasing the probability of selling their stocks at reasonable rates. Furthermore, it also facilitates trading their stocks with buyers at affordable rates.
The transfer process in a stock exchange occurs by transferring the stock from the seller to the buyer. This process is executed only under the disposition of the required sum of money.
Who Are the Market Participants?
Many participants function at various levels in regulating the share market. Buyers and sellers are the most primary participants.
- Brokers or Stockbrokers – The primary job of brokers or stockbrokers in the share market is to trade shares. They are licensed by a regulator. Stockbrokers act as middlemen, connecting buyers to sellers. The stockbrokers in the share market generally make the most profit. No matter whether shares are going down or up, stockbrokers manage an excellent profit. Stockbrokers charge a substantial sum of money in exchange for their work from the traders.
- Regulator – The main role of the regulator or the regulatory authority is to enforce the laws stringently. The regulator also amends or approves various laws when required. For example, in India, the Securities and Exchange Board of India (SEBI) act as the regulator for the stock exchanges.
- Investors – It is the investors‘ role to invest their money in the various stocks that are on the rise in the share market. Different mutual funds, banks, and even insurance companies fall under the category of investors. Investors are often called stockholders or shareholders. Investors can be of various types, like, retail or institutional, and domestic or foreign.
- Stock exchanges – A stock exchange is essentially the place that facilitates the encounter between the seller and buyer. It is precisely where the transaction of stocks or shares takes place. The stock exchange oversees the transactions done and ensures that the whole process is properly done.
Why Analyze Share Market Trends?
One of the most profitable but highly risky industries in the world is the share market. When investing in the share market, you can either make a good profit or incur a huge loss. Analysts analyze the trends in the share market in several ways, but it is never possible to accurately determine the trends.
There are essentially three ways in which the trends in the share market are analyzed. These include the analysis of the short-term trends, the intermediate-term trends, and the long-term trends.
It becomes vital to have the same report and knowledge of the current share market trends. The analysis of the share market is crucial for investors who invest in shares. Since no one wants to make huge losses on their investment, such analyses play a huge role for investors. The investors get knowledge about the market values of shares before deciding which shares to buy.
Share Market Trends Today
The economy of almost every country suffered a massive blow amidst the global pandemic situation. The growth of several markets was on the decline as huge losses were incurred. The global market was also affected, as most countries suffered a huge setback. With activities gradually returning to normal, doubt is cast as to what will happen to the share market.
Throughout the world, the share market trends still are low. Analysis and various reports point fingers at the enormous losses in the global markets as the main reason for the failure of the share market today. Even though most countries are still working to recover from the current state of the economy, it is still not enough to revive the share market trends.
As shown in various business journals, share market trends in recent weeks show mixed data. The European stocks, as well as the Asian and US share market, traded in mixed profits. It shows hopes for the revival of the economy.
Countries like Russia, Germany, UK, and Australia have incurred small profits recently. However, the US, Japan, and China are yet to recover their lost share market trends.
The global economy was gravely affected by the Covid-19 pandemic. In the early days, companies were recording losses and people were getting unemployed, leading to the crash of several markets around the world.
Share market trends in almost every country are still to recover. From Europe to the US to the Asian countries, share markets run ‘flat.’ However, with activities gradually returning to normal, it is expected that the share markets will begin to thrive again.