After we communicate of a stock market concerning any nation, it is the economic system that is thought of first. In the sharemarket, the primary market is the initial transaction between the company issuing shares and the first buyer. Once this has happened, the shares then start trading on the secondary market which is the sharemarket. Once the shares are traded on the sharemarket, then just as the developer would not benefit after the initial transaction, in the same means, the company would not receive any money from patrons selling their shares to someone else.\n\nTraders are drawn to firms that have a high P/E ratio as a result of it is a sign of fine earnings. Many firms will highlight these ratios in a bid to get traders to buy their stock. In some circumstances, firms have fraudulently tampered with their earnings to provide them a better P/E ratio.\n\nWhy did the stock market react positively when oil prices went up and the dollar fell? Successful stock investing requires that you just watch the tide and don’t just float. When really unhealthy news hits a bull market that has gone too far too fast, that spells bother for traders.\n\nWhen more persons are buying a certain stock, the value of that stock increases and when more persons are selling he stock, the value of that exact stock falls. Now it is tough to predict the pattern of the market but your stock broker can provide you honest thought of the continuing pattern of the market but be careful before you blindly observe the advice.\n\nMisalnya, emiten saham ABCD mempunyai keuntungan bersih per saham (earning per share) sebesar Rp200, dengan harga sahamnya saat ini Rp2.000 per lembar, maka PER ABCD adalah 10. Artinya jika kita berinvestasi saat ini pada saham ABCD maka masa kembali modal pokoknya (payback period)-nya sekitar 10 tahun.