When we want to trade in stock market and make money online, we have to know what’s the base of stock market?and how was it created?
ANCIENT TRADING AND SOCIETY
in ancient, farmer, craftsmen, traders and other people went to the nearest markets to sell and buy necessities and traded with each others. For example , a farmer brought their wheat to the market and a baker purchased those wheat, converted to bread , sold it and got money. There were some producers that traded with each other, and produced something for society. Beside them, there were some people that they neither were they producer nor consumer.in fact, they neither were farmer that sell wheat, nor were baker that purchase wheat, they only traded in that market, they were trader. If they thought that wheat can grow and they can make money in markets, they purchased wheat, AND, if they felt that rice is high and it can be lower, they sold all of their rice. in other words, they wanted to invest and trade, they had a great deal of capital.
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FINDING NEW WAY TO GET MONEY
After several years, they figured out a new business, they saw a young creative man that was going to a far city and bringing GOLD, adoring it and selling it to people, and getting huge profit. said: instead of purchasing commodities and maintaining it until it become higher, we can incorporate in this man’s business, give money to him to buy more GOLD, and developing his business. Then, we get a profit share from his revenue. they said So, They went and signed a contract, they invested 100 coin, and they participated in the half of the man’s business. With this contract, the base of the incorporation and investment was founded. Other people found this business attractive, they invested in various industries and got a paper that showed they are a shareholder. When the markets were developing and people were investing more money every day, government was thinking about how we can secure our people’s money?
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STOCK MARKET EMERGING
Then, they created a market that craftsmen, farmers, Jewelers and etc…could share a part of their business, give some money and develop his business, and participate the share holders in profit and loss,that’s how the biggest markets over the history of the humanity was created and named STOCK MARKET. Stock market was created several centuries ago and nowadays stock markets are available around he world, people goes to exchange and trade stocks with each other, some people have a good vision about future of Apple inc and iPhone mobiles, they order apple shares in the market, and others think there is no future for apple , and this is the end of the way, they sell their shares to buyers. This volume of supply and demand specify the price of each stock. According to the world bank’s data, total value of traded stocks around the world has grown rapidly. It was 77 trillion$ in 2017.
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