"Hey man, Sensex is up again, stock X had great intrinsic value, should have bought em when they were undervalued"
Typically what we hear from our all knowing stock market enthusiasts. A few years back, when I had no clue what the stock markets were and how they make money, I used to wonder "who the hell is putting the numbers, people are buying what? I always looked in awe when someone spoke about stocks. Years later, when i really know how all this works, I came to the following conclusion:
- Bull market: A random market movement causing an investor to think himself as a financial genius!
- Stock market: A place where people make money by buying and selling nothing.(stock certificates are a thing of the past)
- Speculator: Someone who got lucky (pretty often)
- Investor: The guy who always wonders why he made less money than a speculator.
- Bear Market: A frequent reminder that nothing is permanent!
- Share Holder: A person who wanted to own a company, but never could afford one.
- Shares: A proof that proves nothing.
- Mutual Funds: An instrument that doesn't make the holder feel like a lone loser! You got company.
- Market Crash: Hasha....pushaa....we all fall down.
Well, this is in simple words what happens in a stock market. Fact is very few people understand it; and the people who do think "what the hell?"
