Analysis of Stock Market players and their Importance

A stock market, stock market or stock market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of shares (also called shares), which represent ownership claims on the companies; these may include securities listed on a public stock exchange, as well as shares traded only privately, such as shares in private companies that are sold to investors through stock crowd funding platforms. Investing in the stock market is most often done through stock brokers and electronic trading platforms.

Stock market is one of the place which employs many types of employees under its small framework. When we look inside this broad framework we find many types of players’ small, big, temporary permanent, active, lazy and some more experienced ready to play and show their skills in this market. As there are millions of investors in the world and many different types of investors, so it is important to know who the competition is that one are facing before entering with the sharks. And truly all the players are professionals in their own kind.

Making of these Sectors-
Corporate management is the cheerleaders of their own company cheering and acting with a motive to make people to invest in their own company. One should be skeptical and analyze any news that a company releases to the public for the underlying reasoning and make sure one are not trying to overdo ones company’s stock without substantial reasoning. One can buy the hype and then find out that the CEO was dumping stocks and the stocks start to sink.

After this there comes Brokers who are the people who run business for us. Everyone uses them in some way by sending commercial orders that need to be filled, be it a buy or sell order. There are many types of this kind like

online brokers like Scottrade, E-Trade, AmeriTrade, etc.
Full-service brokers – financial advisory firms like Edward Jones, Northwestern Mutual, bank financial advisers, etc.
Floor Brokers – perform trading on the floor.
After the brokers the next type of population in this market are the Analysts, ones who research and analyze certain actions to predict expected future earnings and revenues. They issue analyst reports for their companies they work for, such as banks, hedge funds, mutual funds, etc., to help management decide whether to buy a stock or not.

Not only people but some commissions and firms like SEC (Stock Exchange Commission) The head of the stock market that regulates unfair practices, privileged information and many other rules that can affect companies, also takes a huge and active role in functioning of the business.

There are even people like online investors, someone who wants to trade from home and create an online brokerage account with a few hundred dollars to many thousands of dollars. This is the self-managed investor, who trusts himself with an experienced financial advisor.

Other player like TV promoters – guys on TV who announce stock quotes that millions of viewers see and then may or may not buy, depending on how naive they are, and Financial authors who publish trade theories and market analyzes that investors can read and be persuaded to test, also works very hard to promote and ease the functioning of stock market investment.

And lastly as everything and place in our dear world have both positive and negative impact we also have some bad players in this market like

· Penny stock promoters
· Spam Mailers trying to overdo a stock so they can dump shares
· Unethical brokers – brokers who want to do a lot of business for one to accumulate a lot of oner commissions. (Wolf of Wall Street)
Flipping houses are basically the risky part of the stock market where the main working is done. This comprises of

Financial advisers People who manage people’s money and invest in stocks and other assets for that person’s retirement

Hedge funds are extra-large funds available to high net worth individuals who oversee millions and billions of dollars.

Mutual funds are money from clients that is pooled in this large fund and managed by a mutual fund manager. These are usually invested in higher priced stocks, as they manage millions and billions of dollars. If mutual funds do not perform well, managers will still receive fees that are typically different from hedge funds that have performance watermarks before they are paid. Watch out for mutual fund rates that put an end to the dynamics of wealth creation.The investment is usually done with an investment strategy in mind along with proper Stock Analysis.

Pension Funds – The largest managed billions and trillions of dollar funds that invest to increase the pension fund and pay to pay everyone’s pensions

These big guys who have millions of dollars to invest usually represent a large part of the demand in the stock market because they need to buy so many shares with that amount of money.

When they download and sell stocks on the market, they can also really stock stocks, because there won’t be a demand big enough to fight the huge supply.

For this reason, most funds need to strategically divide their money into shares and buy shares over time, such as several days or weeks.

If one are lucky enough to get into a stock that many institutional funds want before one start buying, one should be in good shape, as the demand for that stock should theoretically increase the price.

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