Tuesday, August 16, 2011

Understanding Stock Markets....

Lately I've understood Stock Markets...and i still don't understand what the heck exactly it is....

In almost every news channel or now there are dedicated business channels which keep airing about the what is happening in the stock markets minute by minute...if stock markets looses points it makes headlines in TV and Newspapers and vice versa...

The Biggest funda that i understood about a entrepreuneur who starts his company of a job website runs it day and night with his sweat and blood and when he decides to take his company public ie into stock markets and during that time when it's turnover is approximate 210 crore annually and with a profit of 40 to 50 crores.... suddenly becomes among the richest men in India on the very first day of the company is listed....as Market cap touches approx 5000 crores and his personal net worth approx 2000 crores!!!!!!!

One of our relatives was a happy guy with a small family with a good job and decent income and he too had this fancy about stock markets of investing and making more money....and i was told that this individual invested all his savings into stock market and eventually went bust...it was a total disaster...they had to leave their own house and go live in a rented house for smaller amount while his kids were still in school and college...
If someone loses then someone is gaining..then who it is....

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