The stock market, also known as the equity market or share market, is a marketplace where people can buy and sell shares of businesses. Stocks represent ownership claims in these businesses and may include any of the securities listed on a public stock exchange. In addition to stocks, companies may have bonds, options, and other types of securities.
The share market is experiencing a rough patch, with volatility in the past few days. AMP Capital’s chief economist says the next few months will be challenging for investors. He points to the high price of oil, slowing growth almost everywhere, inflation concerns, and the ongoing credit crunch as the main culprits. However, despite these risks, investors should still consider a long-term view before taking positions.
The current share market in Nepal is showing signs of stabilizing, but it is on a very fine line. The governing body is trying to react to the market and minimise potential losses. This means that it is as important for an investor to conduct research as it is to do their own analysis. Taking advice from others may lead to disaster, so it is important to make your own assessment.
During recessions, share markets tend to decline more than usual. While the UK share market’s 55% drop between November 2007 and March 2009 was the largest fall in history, it was not the cause for the Australian market’s fall. Most share market falls follow a strong rebound in the next 12 months. Despite this, it’s important to note that the risk of a recession in the US is low.