Should We Invest in Stock Market or Not?
Should We Invest in Stock Market or Not: HOW DO WE DECIDE THE PRICE OF THE SHARE : TAKE AN COMPANY : WE STUDY : 1. DEMAND AND SUPPLY OF THE COMPANY 2. BALANCE SHEET OF THE COMPANY 3. GROWTH OF THE COMPANY LETS UNDERSTAND THIS WITH AN EXAMPLE: DEMAND AND SUPPLY A CIRCUS OWNER GOES FOR THE SEARCH OF MONKYES IN THE JUNGLE BUT DOES NOT FIND ANY, AFTER A LONG SEARCH, HE FINDS A VILLAGE WHERE THERE ARE MANY MONKEYS. SO THE CIRCUS OWNER ASK ONE OF THE PERSON SITTING BY IN THE VILLAGE FOR THE MONKEYS. AS THE MONKEYS WERE AVAILABLE IN ABUNDANT THEY HAD NO VALUE, THE PERSON SITTING BY THOUGHT FOR A WHILE AND SAID TO THE CIRCUS OWNER " SIR THIS MONEY COST RUPEES 500 EACH". THE CIRCUS OWNER PAYS FOR THE MONKEY AND TAKES AWAY SOME MONKEYS. AND SAID WOULD RETURN NEXT MONTH FOR SOME MORE. AFTER SOME DAYS THE CIRCUS OWNER THE COMES TO THE SAME VILLAGE TO BUY SOME MORE MONKEYS. NOW THE VILLAGER TELLS THE CIRCUS OWNER THAT THERE IS SCARCITY OF MONKEYS AND NOW IT WOULD ...