| Across the globe in many nations, you will find | | | | When you are stock picking with a view to invest, |
| financial markets. Some of them may be very large | | | | and have completed a technical analysis of the stock |
| and others may be small with a few participants. A | | | | picks, you will look for sellers on the financial markets |
| financial market is a place that allows buyers and | | | | and purchase the shares at a price that is suitable for |
| sellers to trade assets such as stocks, currencies, | | | | you. This is all part of a financial market. Without it, |
| commodities, or any derivatives that are defined by | | | | you would find it very hard to find sellers or buyers if |
| basic regulations on trading, transparent pricing, costs | | | | you were the one selling. The financial markets |
| and fees, and market forces that determine the | | | | makes it easy for participants to come together to |
| price of securities that trade. One of the largest and | | | | trade in one place. When you invest in the stock |
| well known markets where investors are trading | | | | market today, you need to research the stock |
| stocks is the New York stock exchange. | | | | market to find out how the mood is from other |
| Financial markets are used for various things, from | | | | investors. |
| bank loans and mortgages, to shares and stocks. | | | | The financial markets can be bearish or bullish, and it |
| They bring parties together so that they can do | | | | is important to know what the sentiment is so that |
| business. In the case of stocks, a company who | | | | you can decide on the best course of action for any |
| needs to raise capital to expand its business may | | | | stocks you are holding. If it is a bull market, then |
| decide to sell shares to investors. The capital it gets | | | | investors are feeling positive and expect the market |
| from the sale of its shares can then go towards its | | | | to continue rising. This could be a good time for you |
| expansion. In return, the investor hopes to see an | | | | to step in, provided you are not entering at the |
| increase in the companies income from the | | | | height of the uptrend. If the market mood is bearish, |
| expansion, which should be reflected in the share | | | | then investors will be selling their positions in fear that |
| price, assuming all other aspects of the company are | | | | things will get worse. They panic, and mass selling |
| in good order. | | | | brings the market down. |