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Liquidity of Stock Market

What is Liquidity of Stock Market? Liquidity describes the extent to which an asset or security that can be quickly bought or sold in the market at a price that reflects its intrinsic value. In other words: the ease of turning it into cash. Cash is universally considered the most liquid asset, while tangible assets, such as real estate, fine arts, and collectibles, are all relatively illiquid. Other financial assets, ranging from equities to partnership units, fall in various places in the liquidity spectrum. Cash is considered a standard of liquidity because cash can be quickly and easily converted into other assets. If someone wants a $10,000.- refrigerators, cash is the easiest asset to get it. If the person does not have cash but a collection of rare books which has been valued at $10,000.-, he might not find someone who would exchange them for a refrigerator for their collection. Instead, he had to sell his collection and use cash to buy a refrigerator. That might be fine i...

How to Make Stock Analysis

Although there are hundreds of shares listed in the Stock Market, not all of them have good prospects in the future. Aside from the fact that the company's performance is not necessarily good, the projected increase in share prices does not always offer a reference to our desires as investors.  Therefore, every stock investor must know the following three methods of stock analysis. 1. Fundamental Analysis Stock fundamental analysis is an effort to project the outlook for a stock based on macroeconomic conditions, related industry sectors, as well as the financial statements and organizational structure of the issuer of the stock issuer. Macroeconomic conditions and the industrial sector can be obtained from mass media coverage, while financial reports can be accessed on the IDX website or the issuer's website. In stock analysis from a fundamental perspective, investors must be diligent in listening to the latest economic news and financial statements of the iss...

Definition, Example, Types, Benefits & Risks In Stock Market

What is Stock? Stocks are a type of securities that signify proportional ownership in an issuing company. Stocks are sometimes called equity. Shares give shareholders the right to proportion of the company's assets and income. Shares are generally sold and bought on the stock exchange . But shares are also sold privately. Stock transactions must follow government regulations intended to protect investors from fraudulent practices. Historically, stock investments have outperformed most of the other investments in the long run. Stock investment can be done through online stock brokers or stock securities registered at the governing institution in a country. A public company issues / sells shares in order to raise funds to run its business. Shareholders are like buying a small company and have the right to a portion of their assets and income. In other words, the shareholder is the owner of the publishing company. What Does It Mean to Own a Company by Buying Shares?...