Do you know what the stock market is? You've often seen people talk about
it. And most of the time you may have seen many related posts on the
internet, but did you know that many of these posts do not give you the
right information about this, and you are confused by half incomplete
information.
Many people want to invest in Share Market but due to lack of proper
knowledge about Share Market they either avoid investing in Share Market and
do not invest in stocks or lose their money by investing in Stock Market.
Stock market or stock market has many names. "Share" is an English word. The
simplest and simplest meaning of this is "part". And whatever the stock
market is, it operates on the principle of "share".
BSE (Bombay Stock Exchange) is considered to be the largest
stock exchange in India. It was established in 1875 as
India's first stock exchange. India's second stock exchange is the NSE (National stock exchange of India). It was founded in 1992.
So let's find out what is the stock market - Share Market Information
And how it works. So our post today will try to give all the information
related to the stock market so that you will not have more losses and also
get good information about the stock market. So let's get started and get
complete information about the Share Market.
What is share Market?
As you know, the stock market or the stock market is known by different
names and I have already said that share means "part" which means we can
call our share in the stock market company.
For example, suppose a company has issued one lakh shares. Now if a
person buys some shares in that company, he becomes the owner of those
shares. For example, if you buy 40,000 shares out of 1 lakh of a
company, its share in that company will be 40%. And he will own a 40%
stake. Stocks represent a person's share in any company. And whenever
that person wants, he can sell his shares to others or buy another
person's shares.
The value of a company's share or stock is reported on the BSE. The
share price of all the companies decreases or increases depending on
the profit of the company. The Securities and Exchange Board of India
(SEBI) controls the entire market. Only when SEBI allows a company can
it announce its initial public offering. No company can issue an IPO
without the permission of SEBI.
When does a company appear in the Share Market?
In order for a share market to be listed or visible in the stock
market, a company has to enter into a number of written agreements
with the exchange, under which the company is required to disclose its
actions to the market from time to time.
The valuation of a company is based on the information provided by
the company and based on this valuation, if the demand goes up or
down, the share price of that company fluctuates. If any company does
not comply with the terms of the listing agreement and is found guilty
of violating the rules, SEBI will take action to remove it from the
exchange.
In addition to this, the company has to go through a lot of things to
appear in the stock market. In addition to the company’s overall
record of the last 3 years, the company should have a market share of
over Rs 2 crore, the applicant company capital for IPO should be at
least 10 Cr and 3 Cr for FPO.
How many types of shares?
There can be many types of shares and different people interpret them
differently. But we have divided the Shares into 3 main
sections.
1) Common Shares - Anyone can buy and sell if needed. These are the
most common types of shares.
2) Bonus Shares - When a company makes a good profit and company wants
to give some of it to its shareholders. But in this she does not pay
instead of share, if she gives share, it is called Bonus Shares.
3) Preferred Shares - These shares are brought by the company only to
certain people. When a company needs money and wants to raise some
money from the market, the shares it issues give the first right to
those particular people to buy. Such as employees working in a
company. Such shares are considered very safe.
How to buy stocks?
To buy stocks, you must first decide whether to buy the stock yourself
or seek the help of a broker.
If you are taking the help of a broker, first you have to open your
account, which is called Demat Account. Which you can open through
your broker. There are many benefits to buying stocks through a
broker, one is that you will get good guidance and the other is that
you will have complete knowledge of the stock market. The broker
will charge a fee or share the profits in the stock to help you and
provide information about the stock.
There are only 2 stock exchanges in India. The NSE and the second
BSE can only buy or sell stocks from the same companies listed in
it.
Whenever you buy or sell a share, the money goes into your Demat
account, your Demat account is linked to your bank account. You can
easily send money from your Demat Account to your bank
account.
If you want to invest your money in the stock market, you can
create your account on Discount Broker "Zerodha". In this, you can
open a Demat Account very quickly and easily and also buy shares in
it.
What is trading in the stock market?
The word "Trading" is very popular and widely used in the
stock market. In Marathi, the word means "business".
Whenever we buy a good or service and keep it with us for
some time and when the good price of that good or service
comes then we buy a good or service for the purpose of
making a profit. It is then called "Trading".
By the way, there are many types of Trading. But there are
mainly 3 types of trading that most people like and use.
1) Intra-day Trading: Trades completed in one day are called
Intra-day Trading. In intra-day trading, stocks are bought on
the same day and sold on the same day.
2) Scalper Trading: Trades sold within minutes of purchase are
called Scalper Trading. In this, the shares are bought and sold
immediately in 5 to 10 minutes. This type of stock makes more
profit. But it can only be profitable if the amount invested is
high. The chances of damage are also high.
3) Swing Trading: In this, the trading process is completed in
a few days, weeks, or months. After buying a stock, investors
keep it with you for a period of weeks or months. After that,
they wait for the stock price to rise and if the right price
comes, they sell the stock and make a profit.
People consider the stock market a dangerous game. In which man
only drowns but not at all. This assumption is completely wrong.
If invested in the stock market in the right way and with
restraint, that person can make a lot of profit in it. But before
jumping into it, it is very important for the person to get as
much information as possible. Keep in mind that incomplete
information is always dangerous.But that doesn't mean one shouldn't invest in the stock market or
have different skills or abilities to invest. Anyone can try and
learn about the stock market and invest in it and make a good profit
by investing in the stock market based on their experience. It is
important to know all the information before entering any
field.
Don't forget to share this information with your friends. Thank
you.
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