Stock market – gamble or not Some people think investing in the stock market is gambleing, while some say it’s not gambleing. But the questions is that it is gamble or not .those investors invest in the company without knowing the fundamentals of the company,financial statement of the company ,liquidity of the company consider it as gambling .while those who are economists or have financial background invest in the stock by analyzing the performance of the company do not consider it as gambling .Stock market works on the principle of buying and selling ,if the there is a buying in the stock then its price will go up and if there is selling in stock then its price will go down . Fii foreign institutional investors and dii domestic institutional investors plays a very important role ,because these two invest money in bulk .so when they buy market go up and when they sell at high price or book profit market will go down .Fii are the investors who invest from outside the country , Dii are the investors who invest from inside the country .Fii are more powerful then dii ,because fii has more money then dii .there are many other factors which decidestock market movement and these factors also proves that stock market is not a gamble . Currency valuation ,gdp growth ,central bank policy ,legal situation Currency valuation –if the currency of the country is stronger as compare to other currencies ,then stock market will go up Gdp -it means gross domestic product it the country gdp is high then ,it means country has enough funds to allocate its projects .stock market will go up . Legal situation –if in the country there is no terrorist activity and no situation of war , then investors invest with no fear ,and it will lead to increase in prices and hence increase instock market . Central bank – central bank of any country has to make control on liquidity of funds .excess of funds is as dangerous as inadequate funds . so proper policy are made to control funds. Crr that is cash reserve ratio ,it is the ratio of money which banks have to give to central bank as a deposit .so that when there is inflation central bank increase crr. Hence stock market is a mind game not a gambleing .

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