Introduction to the stock market Research Paper Example | Topics and Well Written Essays - 500 words

Introduction to the stock market - Research Paper Example This share of profit is known as dividends. The dividends are an incentive for the shareholders to invest in the business in order to earn a share of the profit. d) Virtual Trading: Paper trading  (sometimes also called "virtual stock trading") is a simulated trading process in which would-be investors can 'practice'  investing  without committing real money. e) Mutual Funds: These are a collection of funds put together by many investors so that they can be invested collectively in shares, bonds, stocks and securities. These are controlled by the firms such as mutual trusts. f) Same as E g) Stock Market crash: This is a sudden decline in the prices of the stocks that are being traded in the market. This fall can be due to an economic crisis or the result of heavy speculation. h) NASDAQ: The  NASDAQ Stock Market, also known as the  NASDAQ, is an American  stock exchange. "NASDAQ" originally stood for "National  Association of Securities  Dealers  Automated  Quotati ons".  It is the largest  electronic  screen-based  equity securities  trading market in the United States and  second-largest  by  market capitalization  in the world. 2, 3. Participants in the stock range of small individual stock investors to large hedge fund traders, who can be based anywhere.