Basics of Stock Trading is to start from the understanding of the purpose of Trading a stock to understanding the aspects like the parties involved; Exchange, Broker Bank and SEBI. This also includes the study of types of Stock orders and types of tradings that are practiced.
Noeman H, , Basics of Stock Trading, BANK, broker, bse, buy, exchange, Intraday, long, long unwinding, NSE, POSITIONAL, SEBI, sell, short, short covering, stock price, Trade Settlement, Trading Deal
Hi,
Actually, the company gets the money during IPO and price changes of stock affects only the buyers and sellers of the stock. so, the stock price may not impact the performance of the company, but the performance of the company may influence the stock price.
Hence the stock price is driven by company performance and the company does not affected by the buying and selling the shares.
However, the share price may have indirect impact in the company performance for example, a declining share price will make it hard to get loan, can’t attract further investors, difficult to build partnerships, goodwill etc…
Hi Naresh,
Thanks for clarifying that to me. I surely helps me better understand.