How Does the Share Market Work?

The share market operates on the basic principle of supply and demand. The value of a company's stock is determined by factors such as its financial performance, industry trends, and overall economic conditions. When more investors want to buy a particular stock, its price goes up. Conversely, when more investors want to sell, the price goes down.

Investors can make money in the share market through two primary methods: capital appreciation and dividends. Capital appreciation occurs when the value of a stock increases over time, allowing investors to sell their shares at a higher price than they bought them for. Dividends, on the other hand, are payments made by companies to their shareholders as a portion of their profits.