In my effort to further educate newbies in the field of stock
market, I initiated this article for stock market beginners. You
may call it Stocks 101 or Stocks for Dummies.  First and
foremost, what is the stock market? A stock market is an avenue
for companies and corporations to offer their shares in the
public. Once a company listed their shares in the stock market,
then the public is free to buy and sell those stocks. It works
in a similar way to how you might sell and buy gold. So what’s
the pros and cons of a company in listing their stocks publicly?
1. To raise capital. Companies hire an advisor called
underwriter to formulate the Initial Public Offering (IPO) price
of the company’s stock depending on several factors. Then
executives of these companies will conduct a roadshow usually
out of the country to entice foreign investors to buy these
shares. The IPO price is the starting price of the company’s
stock in the stock market when it first traded publicly. An
oversold stock mean that it did well in