What is Stock market and how does it work?
Rishabh Raj Khanna
Lets say that there are two friends named 'A' and 'B''A' starts up a business named 'XYZ'Currently 'A' owns 100% of that businessB who is usually busy with his own gig decides to invest some money in A's businessA sells hime 10% of his shares which is 1000 shares @ rupees 50After a year shares price increased from 50 to 75 as company made good profitsNow B has a friend named CB who has now 1000 shares @ 75 sells 500 shares @ 90 to CSince B sold the shares at a higher price than market the current value of shares is now 90This way B has now 500 shares @90 and now has 45000 rupees in cash by selling 500 to his friend CLooking at the sharp rise A now decides to grow his business and bring more moneyto do so he decides to sell some more shares to a party named 'D'D buys some share @ 85 which decreases the share priceB & C both loose rupees 5 per sharehow ever after waiting for 6 months the current market price of XYZ has reached to 150 rupees per shareputting A,B,C&D all in huge profits