To understand Analyst one needs to know about a place called Stock Market. Everybody has heard of it, but do you know why it exists in first place? to answer this imagine you have an unique business idea of “selling chocolates on cycle”, you think it can be amazing service that people would like to consume and at the same time they would pay for it and you would make handsome profit out of it. But to do all this you need cycle, which in turn needs money which either you don’t have or are running short of it. Let say for simplicity cycle would costs you Rs3000 but you only Rs1500. Now for additional money you can approach general people at large and tell them your unique business and tell them to give you 1500 to start business and they would have equal share in profit. If you closely observe what you have done is sold stake/right in your business, so for this you would have gone to many number of people to convince them about your idea, but what if they all were available to you at single place? That’s called Stock Market.
Now tomorrow let says Mr SRK gives you Rs1500 for your business and you start your business of selling chocolates on cycle, you are happy doing your business. Suddenly one day Mr SRK comes to you and tells you he needs his money back due to some emergency, what do you do? Either you pay him off provided you have money or you say sorry I can’t as money is inside the business and it needs it to run it. In that case what does Mr SRK do? Well what if can find people who would be interested in such deals, as they have enough money to deploy, they can give money to SRK and in turn take his 50% right to profit of your business. So what if a place was available where people like SRK would come and display their products (stake/share in business) and who so ever is interested can buy it, of course on negotiated pricing, that’s why we have a place called “Stock Market”
In short Stock Market is the place where businessmen who need money to do business come or a person who wants to invest in business come. Stock Market is the place where Businesses gets traded. Now if look closely there is chance that your idea of selling chocolates on cycle may not work and business might be failure and it may go into loss. Now if you are doing business profit & loss are part of it, so you did have to accept it, same goes for Mr SRK who gave you money, when he gave you Rs1500 for right to 50% of your business/profit, he also took equal responsibility if your business posted losses. So there is risk of business making loss and at the same time there is chance of business making huge profit, same applies for the person who buys 50% stake in your business from Mr SRK.
Hence Stock Market - Stock Market is the place where businessmen who need money to do business come or a person who wants to invest in business come. - Stock Market is the place where Businesses gets traded- Stock Market is a place to trade risk & reward, if you have money you can buy risk or if you have risk you can sell it and make money.
