The price of shares depends upon several things, the company's profitability being one of the prime factors. Common Stock: This is the equity that a company offers its stockholders as ownership. Think of yourself as a pioneer on the way to the frontier, invest in companies you understand, whose business-models make sense and who offer products that add value to life. Trading sense is often overtaken by herd behaviour, when a rumour or irrational trading penny stocks speculation pushes or lowers prices of the shares in a drastic manner. The element of risk undertaken by the investor is factored in also called internal rate of return or r, this is the rate at which he would have been compensated had he chosen to invest the same sum in a different instrument, such as a Treasury bond. Sectors like software, food and consumer durables are filled with several large, medium and small cap companies which have their own niches and markets. Every stock market has an Index, which is based on stat

This URL was also folkd by: