player 1: Companies
Player 2: investment bank
Player 3: Security and exchange commission
Player 4: initial investor
player 5: Stock exchange
Player 6: brokers.
Player 7: investors.
Player 8: speculator’s.
Quick Pick
The stock market works with Companies, investment bank, Security and exchange commission, initial investor, Stock exchange, brokers, investors and speculator’s with core purpose of raising the capital for the public Corporations and provide investment opportunity for public people’s.
This 8 players are the person which connect together to made the stock market works. Each of the player have unique role, purpose and responsibilities in the stock market. So this article occupied the information about what are the 8 players how they operate and condition in the stock market.
Player 1: Companies (stock market works)
Companies need to raise their industry growth in the future.
Without raising money, companies can’t grow above certain level.
If Companies won’t grow above certain level they won’t be in business for long.
so they go to investment bank to get the money.
Player 2: investment bank (stock market works)
Investment bank simply won’t give money to companies, so they take the part of the ownership in the company to sell it to public.
NO Investment bank simply can’t sell the shares to the public. Because they don’t authority to do it.
Selling the public companies stocks without permission of the SEC is illegal in any country.
they need security and exchange commission to get approve the company shares to sell the any shares of stocks.
Player 3: Security and exchange commission
Security and exchange commission (SEC) are the government which check the companies details and helps to protect investors from any cheating.
And SEC works is to check the companies is legit and Check its all the required SEC needs.
Once the SEC didn’t allow the investment bank to sell any industry stocks. They couldn’t sell it.
Once SEC give authority to investment bank, They can sell the companies shares to the initial investor.
Player 4: initial investor (stock market works)
initial investor are the investor who is the person like professional investor, hedge fund manager , big money investor extra….
Investment bank calculate the worth of the shares of the company. And set the price for initial share and sell to the initial investor.
However initial investor always get the good deal when buying the shares straight from the industry.
But initial investor can’t sell the shares to other investor without stocks exchange.
Player 5: Stock exchange (stock market works)
Stock exchange is the industry, so stock exchange works to helps bring the new buyers for initial investor to sell the shares to others buying investors instead of to the companies.
So companies keep the money without returning money to initial investor and growth their industry.
So however the investor exchange the shares of their industry themselves for the money using brokers account for the entire life of the industry.
Player 6: brokers. (stock market works)
Brokers are the person who come to stock exchange and register with it. And have certain deal for commission for selling the industry shares to the public.
Which public means, Among all investors. where brokers give brokerage account to buy and sell shares of stocks for commissions.
By selling more shares, brokers make more money on commission.
They earn lot in commissions while investor buy and sell the shares of the any industry.
Player 7: investors. (stock market works)
Investor looking for opportunities for investing their hard earned money. Which helps them to grow net worth over time.
So they buy and sell the shares of the stock company among themselves. Which means buyer investors to seller investors.
Buyer investors are the investor who want to buy now
And seller investors are the one who owned the stocks already and want to sell it to buyer.
most of them are not investor but actually a speculator’s.
Player 8: speculator’s or Gambler (stock market works)
speculator’s are the person who only buy and sell the shares of the company using the prediction for trend and price.
Speculator’s completely buy and sells depends on trends of price. They do this only for very quick profits.
They don’t focus on long term like investor. Stock market is working for investor, not for speculator’s.
Speculator’s look for quick money so they also have big risk.
So how stock market works ?
These 8 players are occupied the stock market
Because of only for two reason,
1, companies need money to grow
2, investor need opportunity to invest.
To do this these 8 players come together and made the stock market.
Market rule: #100001
Stock market works in the construction of securities and exchange commission rules that created under the government. So any of the participates who breaks the rules would seriously punishable by the law.
If your not comfortable or align to use this content with based on market rules please learn about how to regulate your investments under your control with use of Rule investing