You must have heard about the stock market through your news channel, paper, and you must have seen on some business channels that the same thing is talked about throughout the day, today the market has gone down, but do you know what the stock market is or the stock What is the market
If not, today I will give you information about this in detail and will know how to buy shares because from here you can earn good money, people have earned crores of money from the stock market.
You can also earn money by investing in the stock market. Share means share and market is the place where something is bought or sold, then share market gives you the opportunity to become a shareholder in a business. Depends on the money invested, let’s know some good things about the stock market.
What is share market?
A stock market or stock market is a market where the shares of many companies are bought or sold, the price of each company is different, then you get the shares of that company according to the amount of money you invest.
When that company does well in the future, then its share prices increase and you benefit but if the business of the company does not do well then along with the company you also decrease because you are a partner in that company.
The stock market opens only 5 days a week and only the shares of listed companies are bought and sold, so it is possible that you have to take the shares of a company and they are not found here, which companies are listed, we call them public company.
These shares are bought and sold through the Stock Exchange. The two main stock exchanges in India are BSE and NSE.
What is share?
Share means “share”. Each share in the stock market represents the company’s share, so whenever you buy shares of a company, you become a shareholder of that percentage.
If a company has issued a total of 1000 shares, out of them you have bought 100 shares, which means that you own 10% in that company.
What are the types of shares?
They have understood well what is the stock, now let’s talk about its type, which is this
The share holders of these shares have certain benefits as compared to the other share holders, such as – If the company declares a Divident, then they are given the highest priority and Divident is also given in a fix amount.
Apart from this, if the company is on the verge of being stalled, then it is also the first shareholder to be Paid out.
Equity shares are also called command shares. The company issues the most shares. These shares are traded in the stock market. These share holders are also given dividend, but it depends entirely on the board of the company how much dividend is given. These shareholders will also have voting rights.
Its full name is Differential Voting Right These share holders have less voting rights than equity share holders, but to fill this gap, companies give more dividend to these share holders.
They have less voting rights, due to which the price of these shares is also less than the equity shares.
Stock exchange in India
The stock exchange is where the listed companies are listed, the company brings its IPO to be listed on the stock exchange, wherein the investor buys shares directly from the company, after which the company gets listed on the stock exchange, after which whatever shares are listed. Investors buy and sell with each other.
Apart from shares, you can also buy bonds, mutual funds, future options, commodities, etc. through the stock exchange, like – we have known that the main two stock exchanges in India are BSE and NSE.
It is also very important to know NSE and BSE because it is not possible to talk about the stock market and not mention it.
What is Bombay Stock exchange
The Stock Exchange in India was started in 1875 and the Bombay Stock Exchange is the oldest and first stock exchange in the country which is still functioning. It is situated on Dalal Street in Mumbai city of Maharashtra.
Its name is included in some of the largest stock exchanges in the world and it is also the first stock exchange in Asia. There are about 6000 companies listed here. SENSEX is the BSE Index which includes the top 30 companies.
What is National Stock Exchange
National Stock Exchange is the largest exchange in India, which was established in 1992, NSE was the first exchange in India where you could buy and sell shares in an electronic (computer based) manner.
On the basis of trade volume, it is the 3rd largest stock exchange in the world, where about 1700 companies are listed, the major index of the NSE is Nifty 50.
How to buy shares
I hope you have fully understood what the stock market is (Share Market Kya Hai) So now you know how to buy shares and how to start your investment journey.
For your information, let me tell you that no person can buy shares directly from the stock exchange, for this you have to open your Demat account and Trading account with Broker.
Only then you will be able to buy and sell the shares of a company. All brokers are members of the stock exchange. There are many brokers in the market, so do a little research and choose a broker because each broker has their own separate fees.
When you open both these accounts with the broker, then on any working day on which the market is open, you can log on to the broker’s website or mobile app by ordering an order from any of the listed companies or buying it automatically. You can get as many shares as you have invested according to the price of any company where you are buying shares.
What is demat account
Demat on this means “Dematerialized account” as you understand it like your savings account, because it keeps the shares, mutual funds, bonds, etc. you have bought and stored in electronic form.
Whenever you buy a share from the stock market, it is transferred to your Demat account after some time, after which you can hold that share for as long as you want.
For example, it depends on you for a few weeks, months and years, and on the day you sell it, it will be removed from your demat account and go to another investor account, all this will be done by your broker just to buy or sell to you. It happens
What is a trading account
Your money stays in the trading account, with the help of this account, you place orders for Buy and Sell in the stock market, it manages all the transactions you have done.
Shares will come in your demat account only when you are able to buy any shares and for this work you need a trading account.
Suppose you have a few rupees in your pocket and you go to the market where there are many shops and you like something from a shop, you checked its price and made up your mind to buy
You gave the money to the shop and you got the thing, in such a situation, you bought it from your trading account and the goods you got will be kept in the demat account.
Why does the share price fluctuate
Well, it depends on a lot of things like – if the company gets an order, if the company performs well, the company takes any steps in view of the future, the company is downsized or the court owner or the management of the company like a court case. Share price decreases and increases due to issues.
If the company does well then it will grow and fall on poor performance because the market opens daily and the company also continues to do its business, any such news has either good or bad effect.
How is a company listed on the stock exchange?
For any private firm that wants to enter the stock market, that company has to enter into a written agreement / agreement with the share market, for this, the company SEBI which is the stock market regulator.
Submits all the necessary documents to him, after which SEBI conducts a thorough examination of them and see if the information given by the company is correct or not, if it fulfills all the conditions of SEBI, then the use is listed in the NSE / BSE. is
For this, the company brings its IPO first, where the shares are given to investors at a small discount. Once the company’s IPO comes, it is listed in the secondary market and you can start normal buying / selling.
Why does the company sell its shares
Now you must be thinking when the share price of the company goes up and the value of the company also increases, then why does it sell its stake, why not keep the entire profit with itself
So the simple answer
Whenever you start a business, in the beginning you do not have so much money that you can expand your business properly because for that you need money, on the same side, companies also want
That they can get money from anywhere and they can increase their business quickly, which will directly affect their profit because when you do business more well then you will also profit.
That is why the company collects funds for itself from here by selling its shares in the stock market and uses that money to increase its business and both the company and the investors benefit as the business grows.
Before investing in the share market, keep these things in mind-
Even today people in India call the stock market as a speculative market because investing here is very risky and some people have lost a lot of their money here in a jolt, you will also think to invest, then only people around you have tried you Will start giving you money or you will lose a lot
They all say this because of their bad experiences because they invested their money incorrectly and sold them at a cheaper price when the share price went down, but there are many examples where people have come through the stock market.
So before investing you should take care of some things-
1) First of all understand that you have to become an investor or you have to become a trader because this will make your journey ahead.
2) Before starting in the stock market, you should get information about share market basics for a couple of months, for this you can read from the online website and there is a lot of good content available on YouTube as well.
3) Any company in which you have to invest, do a good research about that company, what is its business model, what are the products of the company, whether the business of the company is doing well or not and how much future growth is there in it etc.
4) Do not fall in the circle of cheap, but buy new shares of good quality, many new investors make the mistake that one stock is getting 10 rupees and the other 100 will get more shares, thinking here that they would have taken 10 but they Do not see why it is worth 10 rupees and why the other is for 100 rupees
5) Tips in the stock market can prove to be very dangerous, so stay away from free tips, it is always good to keep your research happy and this will take you further.
6) Never invest money by borrowing in the stock market and invest as much money as you have because if you get a little bit, then you will not have much trouble.
7) Patience is a big thing in the stock market, there is nothing in the short term, so try to stay invested for a long time, but you should always take measured balance risk.
8) Whichever company you have invested in, keep track of it from time to time so that you know whether everything is going well in the company, so that you will know when to withdraw from the company or when to put more money in it. is
What is new learned
We know what is the stock market, how do we buy shares of a company, why should we invest in the stock market
Investing in the share market is a bit risky, but if you do a little search about the business and the company before investing in any company, then you can reduce this risk by choosing a good company.
Always invest money in good business and stay invested for a long time so that you can get the benefit of compound interest. How was the information here.