When the stock market, for example, BSE SENSEX, the shares of the company will be relaxed because the shares are with the public so that if the shares upwards, the profit decreases of public capital when you come to the public . How it affects the company that owns these shares?
On February 9, 2010, In bse market, by admin
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Basically its that child’s game “Follow the Leader”. Only with trading its very, very real and could be very costly.
No one person or business controls the market. However, there are different factors which cause the market to rise and fall:
The Dow 30
S&P 500
The NASDAQ
There are a few others – including commodities and currency, but these are the three primary indices [indexes] which just about every trader follows.
The institutions and brokerage houses and a few large traders control hundreds of thousands if not millions of shares of a particular company’s stock.
Thanks for asking your Q! I enjoyed taking the time to answer it!
VTY,
Ron Berue
Yes, that is my real last name!
The stock is directly linked to the value of the company so the public is not the only ones that lose, the companies themselves lose also. If you look at a company profile you will see this, it list the value of the shares and the number of shares, it then shows the companies value. After a company becomes large enough they move to the big board,the NYSE and they start paying dividends to their shareholders instead of letting their stocks value continue to run. That is what Microsoft did for example.