What is Share Market: Friends, often in News media we hear news about share Market. But very few people like us, who would know about the stock market. And those who know, they do not yet know how to start the stock market? So today we will know about the stock market in tips.
Stock market is also a good way to earn money. Although investing in the stock market can sometimes be risky, the share market is a good way to earn money by investing money, as it depends on the profit and loss of the company. So let’s know what is Stock Market?
In today’s world, everyone wants to earn money in some way or the other. If an industry wants to earn money by planting, then someone wants to earn money from the Internet. Whatever may be the means, but everyone’s goal is one and that is to earn money.
Hindi meaning of Share Market is market share. Share Market is the market where various companies sell their stake stock. Where you can buy and sell those shares. A company needs capital or money for its expansion, growth etc., and for this reason it raises money from the public. The process by which a company issues shares is called Initial Public Offer (IPO).
It is subject to the company, how many shares they issue or how many shares they give to the individual / group. Have you understood what is stock Market? Now know what kind of share stock is there? How to start stock market?
If a company has issued 500 shares for sale, and you buy all the shares as per the company’s proposal, then you are entitled to own that company. If you want, you can sell it to another buyer whenever you want.
There are two types of stock market.
- Primary market
- Secondary market
What is Primary Share Market
A company enters the primary market to raise funds. It is in the primary market that a company gets registered to issue shares to the public and raise funds. Companies are usually listed on the stock exchange through the primary market route. If a company is selling shares for the first time, it is called Initial Public Offering or IPO, after which the company goes public. While going for an IPO, the company has to provide details about themselves, their financials, promoters, their businesses, shares being issued, price bands etc.
What is Secondary Share Market
Shares purchased in the primary market can be sold in the secondary market. The secondary market operates through counters (OTC) and exchange traded markets. OTC markets are informal markets in which two parties agree on a particular transaction to be decided in the future. Exchange traded markets are highly regulated. Also called as auction market in which all transactions are through exchange.
How to Start Share Market:
If you want to invest in the share market and you want to know how to start stock market, then the whole process is given below, how you can start investing in share market by buying shares.
To buy Share, you need a Demat account which you can open in the bank or you can also open it through a broker. The broker act as an intermediary between the stock exchange and the investors. So to start investing or trading, you have to open a demat account with a broker.
Demat account is linked with Savings account of your bank. After the company makes a profit, all the money you get will go to your demat account, not to your bank account. Whenever you want, you can transfer money from that demat account to your bank account later.
If you open your account through a broker, you will benefit more than that. Because one, you will get good support, and secondly according to your investment, they suggest you a good company where you can invest your money. They also take money to do this.
There are two main stock exchanges regulated by SEBI in India, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Shares are bought and sold here.
These brokers are the members of the stock exchange. We can trade in stock exchange only through them. We cannot buy or sell any share by going directly to the stock market.
What is Bull Market / Bear Market?
The bull market is the market where share prices keep rising, and the bear market is the market where prices keep falling.
Profit and loss in the stock market depends on the profit and loss of the company. Suppose you bought a company’s stock for 10 rupees and the business of the company goes into profit, after which the market value of the company increases and the price of the share you buy also increases.
There is no limit to the profit loss in this market. If you can become a millionaire overnight in this market, then you also have a lot of streak overnight. Because profit loss depends on the profit loss of the company.
And this profit loss is demonstrated in bull market and bear market. You will often hear people talking about these markets.
Share Market History
Let us now look at the brief history of the stock market.
The stock market was started in Mumbai in 1840 by 22 people. The method of that time was completely different from the way of today. These people used to sit in a town hall in Mumbai and transact stock. This went on for years, after which their number kept increasing gradually.
And formed its Native Share & Brokers Assosiation in 1875, and established an office in Dalal street. Which later became known as Dalal Street. The credit for setting up this oldest exchange in Asia goes to four Gujarati and one Parsi broker.
Share Market Investment Tips
Before investing in the market, it is very important to have a good knowledge about the share market. Because this market is full of risks. Where there is a profitable deal in this market, the same small mistake also causes damage. Let’s know Share market tips.
Understand the ups and downs: Before investing money in the share market, you have to understand the ups and downs of the market. You have to gather complete information about when and which company to invest in shares. Only then should you buy shares.
Get complete information about stock Market
To get a lot more information about the share market, you should watch news channels like Business News channel like Zee Business, ET Now, CNBC Awaaz, NDTV Profit, and Business News Magazine like Economic times, Business Today, Business India, Outlook Business should be read regularly. List of best business news channels in India 2020
With this, you have knowledge about the company, and along with it, you also get information about the ups and downs of the business. This is the best way to keep the latest information about Share Market.
Invest additional capital: Risk is high in the stock market, so never use your savings. Always invest with extra money only. So that in case of damage, there is no strong shock.
Invest less capital: If you are new, never invest money at all. Invest a little money, it also reduces the possibility of loss.
Take control of your emotions: Control your emotions before and after investing. Do not take a hasty decision. Keep both fear and greed away from you because such feelings force you to take wrong decisions.
Make a decision after thinking: Study the previous record of the company in which you want to invest. Only then invest.
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FAQ about Share market
Q1. What is Share market?
Ans. Share market is the market where the purchase and sale of shares of various companies takes place.
Q2. What is the type of Share market?
Ans. There are two types of stock market.
Q3. Who is the regulatory body of stock market
Ans. SEBI is the regulatory body of the stock market.
Q4. What is SEBI?
Ans. SEBI is a regulatory body that controls the Indian stock market.
Friends, what is Share market in this article? How to Start Share Market? Have tried to give complete information about Share market tips and Share market history. How did you like this blog, you can definitely tell us in the comments, and share this information on social media through Facebook and twitter.