How share trade

Most shares are traded on exchange which is places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out on a trading floor. Two trading floor are located in Bangladesh, DSE which is located in Dhaka, cse is located in Chittagong. We should distinguish between the primary and secondary market. The primary market is the first phase of share where securities created before trading at floor which is called IPO. In the secondary market investors trade previously issued securities without the involvement of the issuing companies. The secondary market is what people are referring to when they talk about the share market.

What causes price to chance: share prices change because of supply and demand. Any single time if more people want to buy a share than sell it then the price move up. Conversely if more people want to sell a share than buy it, which is a greater supply than demand then the price falls. On Wall Street the bulls and bears are in constant struggle. A bull market is when everything in the economy is great people are finding jobs,GDP is growing and share prices are rising. Things are just plain rosy, picking shares during a bull market is easier because everything is growing up. Bull market can't last forever though and sometimes they can lead to dangerous situations if shares become overvalued. If a person is optimistic believing that shares will go up he or she is called a bull and said to have a bullish outlook. A bear market is when the economy is bad recession is looming and share prices are falling.