How The Subject of Finance Is Related To Stock Market


How The Subject of Finance Is Related To Stock Market

Finance has always been considered to be an integrated subject and which has great exposure and scope if linked up with the particular subject. Further, one thing which every business man and a person who loves this subject needs to understand is that the growth of every business depends on its finance segment and therefore finance itself is quite a vast subject. 

Coming towards the relation of finance subject with stock market we need to understand two modules of stock market i.e

  1. From where does company get its finance
  2. Implication of finance model on the growth of company

Module 1: From where does company gets its finance:-

There are numerous way through which a company or organization can get its finance when they need an expansion for their business organization and as we know a person does not have all the money need for the expansion by himself and therefore the companies which are working steadily towards their growth prefer issues public prospectus where they offer the ownership of their company to limited extent as per they need the finances in the form of shares and as per the growth in the company the increase and decrease in the price of share work. The listing of the company for public offering by the form of initial public offering is often known as IPO and further making the work of the company started in the stock market.

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Module 2: Implication of the finance model on the growth of the company:

When the project started by the company with the offerings collected in the form of shares distributed gets on the right place and the company gets into good profits by doing potential work which is getting the proper success the company owners were looking forward for then the growth will be achieved and with that growth the price of share will be increased further giving good growth in finance area of all the shareholders as the amount invested start getting increase. Also the finance of the company depends on the growth they are getting in their work and so is the growth in the price of share.

So, if you are a shareholder then do understand the company module perfectly before investing.

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