Most of the people around the world are trying to find out the mystery behind a stock market. Stock is nothing but a part of ownership of a company. If any company needs any type of financial assistance from public to grow up their business, then the issue the stocks through proper stock exchange. The unit of stock is called share.

Value of Stocks

After earning profit by the company they distribute the profit to the shareholders according to the number of shares held. This is also called dividends. The power taking decision on behalf of company depends upon the number of shares you are holding. If your number of shares is more than 51% it seems that you are one of the main owners of the company and any decision can be taken by you if needed. If you are holding a sizable number of shares you may be the director of the company and can participate while taking decisions regarding business policies of the company.

Stock Prices

The price of the company stock depends on the how well the company is working in the market. If the company gains so much goodwill then most of the investors want to invest to that company. There the demand of the stocks will be higher and the price of the same will be getting hired proportionately.

There are several important factors on which the rise or fall of the price of the stocks depend.

• Demand of Stocks: If demand of stocks increases then the price of the stock always increase. This is basically depends on the goodwill of the company. If the company gains so much goodwill then the investors automatically want to invest to that company.

• Earning of the company: If the company make profits from its business for last few years, the investors show interest to invest over there. This is an analysis done by the experts. They always research with the company’s financial stabilities. If they found the company is well stable in terms of finance, then they insist the investors to invest to that company.

• General Observation: In asian stocks the investors are trying to invest by following the trends of markets. They invest basically on the sectors which are giving profits for last few years. Usually the renowned companies are giving the same for which the demands of stocks of the companies are increase day by day and the prices of the stocks are increase.