What Is Share Market?

What Is Share Market?
--- Copyright © 2008 Jason Ng, Founder Masters 'O' Equity.

Learn what share market is and how to profit consistently from trading in the share market.

What Is Share Market?

A Share Market is simply a marketplace for the buying and selling of company shares. Share market is more commonly known as a "Stock Market" or "Capital Market".

What then is a company share?

When a few people put money together to form a company, each of these people owns a share of the company equal to the proportion of money that is contributed. So, if 5 people come together and put forward $20,000 each forming a company with share capital of $100,000 ($20,000 x 5), each of these shareholders own 20,000 shares of that company or 20% of the company. When that company decides that it needs more money to expand its operations by going public, it is actually allowing the public to buy its shares through a share market.

Why buy company shares then?

To make money of course! When a lot of people are buying a share that you own, the value of those shares goes up and then you can sell it for that higher price and make a profit. This is why so many people today are looking to trading shares as an additional income. The problem is, many good shares are actually too expensive for most common folks with only a small saving to buy and the profits can also be quite limited. This is why so many people with only a little money to risk in the share market now trades stock options instead.

What is a stock option?

A stock option is a security that can be bought and sold in a share market just like a share. It lets you profit when the share goes up but it costs only a small fraction of the price of the share itself. For example, Microsoft shares are trading at $30 right now but its stock option costs only $2! On top of that, stock options grants you leverage in the way that when the share goes up by 1%, its options can go up by about 10%! This allows investors with only a little money to trade with to make a huge profit quickly.

The US share market is the biggest market for trading stock options and offers the most trading opportunities. The good news is, almost anyone from any countries can trade stock options in the US market and if you want to learn how to make money consistently from trading options in the US market, please check out our Star Trading System Training Course NOW!

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