Forum 13 EFA

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1. What is the Stock Market?

The stock market is where you can buy, sell, and trade stocks any business day. It's also
called a stock exchange. Stocks allow you to own a share of a public corporation. The
stock price is based on the corporation's earnings. If the company does well, or even if
everyone thinks the company is going to do well, the stock price goes up. Stocks also rise
when the economy does well. Many companies also give a dividend payment each year
to the stockholders, which provides extra value.

2. What does the bear and the bull stand for?


Basically, the terms Bear and Bull describes the share market condition. If someone
saysthe market trend is bearish or market is in the bear trend they are meaning it that the
stock market is going downward and if someone using the bull term, it means the market
is in the uptrendthat is shares prices are going high.
3. What factors affect stock market?
Here are some company-specific factors that can affect the share price:
 news releases on earnings and profits, and future estimated earnings
 announcement of dividends
 introduction of a new product or a product recall
 securing a new large contract
 employee layoffs
 anticipated takeover or merger
 a change of management
 accounting errors or scandals

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