NowGazer

Introduction The equity market—also known as the stock market—is one of the most vital components of the global financial system. It enables companies to raise capital and investors to grow their wealth. This blog will explain how equity markets function, who participates, and how you can invest wisely.

1. What is the Equity Market? It’s a platform where shares of publicly listed companies are bought and sold. The two main components:

• Primary Market: Companies issue new shares through IPOs.
• Secondary Market: Existing shares are traded among investors.

2. Key Terminologies

• Stock: Ownership in a company.
• Shareholder: Someone who owns shares.
• Dividend: Profit-sharing mechanism.

3. How Stock Prices Are Determined Prices fluctuate based on demand and supply, company performance, news, and investor sentiment.

4. Stock Exchanges

• NYSE & NASDAQ (USA)
• NSE & BSE (India)

5. Market Participants

• Retail Investors
• Institutional Investors
• Brokers
• Market Makers

6. Investment Strategies

• Long-term Investing
• Day Trading
• Swing Trading
• Value Investing

7. Risk Factors

• Market risk
• Company-specific risk
• Regulatory risk

8. Example: Apple Inc. In 2010, Apple stock was under $10 (adjusted for splits). A $1,000 investment then would be worth over $30,000 today.

9. Tools for Analysis

• Fundamental Analysis
• Technical Analysis

10. Conclusion Understanding the equity market gives you the power to make smarter investment decisions. It’s not just about making money—it’s about building long-term wealth.