Do you know what the stock market is? You must have seen people talking about it often. Often, you have seen many posts on the internet, but do you know that most posts do not give you the correct information about this thing? Still, instead of half the incomplete information there, it puts you in further confusion.
Many people want to invest in the Share Market but avoid investing in it due to their lack of proper knowledge about the Stock Market. They do not invest or lose money in the stock by investing in the Share Market.
The stock market has many names, and different people know it by other names. “Share “is an English language word. The simplest and easiest meaning is “chunk”. And what the stock market is, it works on the principle of “share “, “share “.
BSE (Bombay Stock Exchange) is the largest stock exchange in India. It was established in 1875 as India’s first stock exchange. The second stock exchange of India is the NSE (National Stock Exchange of India). It was established in 1992 as India’s first demutualised electronic stock exchange.
So, let’s know what this stock market is. And how does it work? So, our post today will try to give all the information related to the share market so that you can avoid taking more losses and get good news about the stock market. Then, without delay, let’s start and get complete information about the Stock Market.
What is the Stock Market?
As we know, people know the stock market or the stock market by different names, and I have already told you that the meaning of the Share directly means “share” can be called Share in a company in the stock market.
For example, suppose a company has issued one lakh shares. Now, if a person buys all the shares in that company, he becomes the company’s owner. For example, if a person buys 40,000 shares out of 1 lakh in the company, his Share will be 40%. And he will own that 40% share.
Stocks show the individual’s stake in any company. And whenever that person wants, he can sell his shares to others or buy another person’s shares.
The value of shares or stocks of companies is recorded in the BSE. The value of the stocks of all the companies keeps decreasing or increasing according to the company’s profitability.
The Securities and Exchange Board of India (SEBI) does control the entire market. Only when SEBI permits can it become a company to issue its initial public offering; no company can give an IPO without SEBI’s permission.
When Does The Company Appear In The Stock Market?
To be listed or visible in the stock market, the company has to make several agreements in writing with the Exchange; under that agreement, the company must occasionally give information about its activities to the market. Such information in this information. This affects the interests of investors.
The company’s valuation is based on the company’s information. Based on this assessment, the price of the shares of that company fluctuates when the demand decreases. If any company does not comply with the rules of the listing agreement and is found guilty of violating them, then SEBI will take action to remove it from the Exchange.
Apart from this, the company has to go through many things to appear in the stock market. Such as the complete record of the company for the last three years, the company’s Share in the market above 25 crores, and the capital of the applicant company for IPO is at least ₹ 10Cr. And ₹ 3 CR for FPO. Apart from all these things, many things are taken care of when the company is listed. For a listing of a company, it has to follow strict rules.
What Are The Types Of Shares?
There can be many types of shares, and people define them differently. But we can divide the Share mainly into three forms. Let us know the kinds of Share: –
- Ordinary Shares – Anyone can buy them. And can sell if needed. These are the most common methods of stock.
- Bonus Shares – When a company makes a good profit, it wants to share it with its shareholders. Instead, he does not want to give money; if he offers shares, it is called a bonus share.
- Preferred Shares – The company brings this Share only to certain people. When a company needs money and wants to raise some money from the market, its shares will give the first right to buy them to certain people, like employees working in a company. Such Shares are considered very safe.
How to Buy Stocks
To buy stocks, first, you have to decide whether you would like to buy stocks yourself or take the help of a broker. Only then can you move forward.
If you take the help of a broker, you must first open your account, which is called a Demat account, which you can get opened through your broker. There is a lot of benefit in buying a stall through a broker; you will get good guidance, and second, you will get complete information about the stock market. Brokers take the money or Shares of profits in the stock to help you with the stock, etc.
There are only two stock exchanges in India. NSE and another BSE. Only companies that are listed in them can be bought or sold in those stocks.
Whenever you buy a share, its money comes into your Demat account only; 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 Share Market, you can create your account on Discount Broker “Zerodha”. You can open a Demat Account quickly and efficiently and buy shares. The link below is given.
What is Trading in the Stock Market?
“Trading” is trendy and widely used in the stock market. This word means “business”. Whenever we buy an item or a service to keep that item and service for some time, we will profit by selling it. It can be called “Trading “.
Similarly, when a person buys a stock in the stock market, the main objective is that after the price of that stock goes up, they can earn a profit by selling that stock. The whole process of buying and selling stocks is called “Trading” to make this profit.
What Are The Types of Trading?
As such, there can be many types of trading. But mainly, three types of trading are very much liked and used by people.
- Intra-day Trading: Trades completed within a day are called intraday trading. In intra-day trading, they buy and sell stocks on the same day.
- Scalper Trading: Such trades sold within a few minutes of buying are called scalper trading. Shares are often bought and sold within 5 to 10 minutes. The profit in such a stock is high. But the gain can be increased only if the amount invested is more. There are more chances of loss as well because the amount charged is also high.
- Swing Trading: Trading is completed in a few days, weeks or months. After purchasing the stock, investors keep it for some time, like a week or month. After that, we wait until the stock price rises and when the right price is found. So let’s sell it.
People consider the Stock Market to be a dangerous sport. In which the man only drowns, but it is not like that at all. This notion is entirely wrong. The person can profit if invested in the stock market with proper methods and restraint.
But before jumping into it, the person needs to take as much information as possible about it. Incomplete information has always been dangerous.
But this does not mean one should not invest in the stock market or a different talent or ability to support. Anyone can become a master in investing in the stock market with their experience by investing in the stock market.
Conclusion
I request all of you readers to share this information about the stock market (Stock Market Courses) in your neighbourhood, relatives, and friends so that our awareness will be there and benefit everyone. I need your support to convey more new information to you.
We hope you liked our post What is the Stock Market? If you have any questions related to this, please comment and ask.
