Shaun Da Costa

trader (1)

They feature in nearly every news bulletin, paper and website. Their ups and downs, bubbles and crashes are reported on a daily basis. Yesterday for instance saw a dramatic plunge in the values of stock markets across the world. However the reality is that for many people unfamiliar with the world of finance, ‘a one point increase in the NASDAQ’ remains an alien phrase. This post will attempt to provide a basic understanding of what stock markets are and what the indices mean for you and me.

Stock markets fulfill two main roles. Firstly they allow companies to raise extra funds by issuing shares without the need for commercial loans. The stock market brings together companies wishing to expand their operations and potential investors looking to gain a return on their savings. Stock markets are therefore an important source of investment for firms. Historically they have allowed for the…

View original post 1,123 more words

Advertisements