Are you wondering, What is Share Market ? Here, I shall guide you about this. There was a time when technology was not so advanced, then the shares of companies were sold orally.
Now it has been replaced by the share market, in which shares are traded by computers connected to the stock exchange network. In today’s time, people can do all the work of the stock market through internet and computer at home.
Many people desire to earn money from the stock market. But most people do not have the right information about it. What is the share market, where and how to start it ?
In this article, we are going to tell you what the share market is and how you can start it. So that you too can earn money from this business.
What is Share Market 2023 ?
First of all, we know what the shares are and how they are issued. Share literally means share. When an entrepreneur issues equity shares to increase his company or business so that any person can buy these shares and become a shareholder in the company. Companies can share their profits with these shareholders through dividends and bonuses. stock market is a place to buy and sell a stake in a listed company.
A company first issues shares to common investors through an IPO ie initial public offering and then its shares are listed on the stock exchanges. In such a situation, you can also apply for an IPO and buy some shares of the company. And when the prices of these shares go up, you can earn profit by selling them. If you keep these shares with you, you can also get a dividend.
Shares can be bought and sold only through Stock Exchange. There are only two stock exchanges within India: BSE (Bombay Stock Exchange) and NSE (National Stock Exchange)
What does it mean to buy Shares ?
Let us assume that a company registered in the NSE has issued a total of 1 lakh shares. If you buy 10 thousand shares as per the proposal of that company, then you have ownership of 10 thousand shares in that company. Now you can sell your share of shares to another investor anytime.
When companies issue shares, how many shares to give to an investor at that time depends on his discretion. To buy / sell shares from the stock market, you have to take the help of a broker.
With the NIFTY, we get to know how the companies whose shares are listed in the index are working in such a situation, if these companies are doing good work, then their effect is also seen in the shares of the companies, due to which they Shares of companies increase and when shares of a listed company increase, due to this, the Nifty also sees a boom.
On the other hand, if the companies listed in the index are not working properly in the market, then it directly affects their stock, due to which their share prices start to fall.
And when there is a decrease in the prices in the stock, then the Nifty itself sees a decline.
How to buy shares online ?
- Before buying shares in any company, it is very important to have a demat account. You also have many ways to create a demat account. Buying and selling shares in a stock market is done through a demat account. A demat account is just like a bank account.
- Whenever we want to buy or sell a share, we have to load the money from our bank account in the demat account like other wallets, after that we transfer the profit amount directly from the demat account to the bank account after making a profit.
- To open a demat account, you can take help of broker company. Or the other way is that you can open a Demat Account from whichever bank your savings account is in.
In order to open a Demat Account, you must have Internet Banking along with Saving Account.
Some important documents for opening a demat account
- PAN Card
- Address proof (Aadhaar card,Voter ID Card, identity card, driving license)
- Passport size photo
- Saving account
- Cancel check
Indian stock exchange
Investments done by investors in the stock market are done under the supervision of Indian stock exchange company NSE and BSE. These two companies keep a close watch on the investors and all the companies listed in their index so that no company does any injustice to their investors, due to which they suffer any kind of loss.
NSE has listed around 1952 companies on this stock exchange.
BSE has about 5439 companies listed on this stock exchange.
Some important tips for buying shares:
Many people only think that investing money in share market is a risky business. The risk in this work also remains only to those who do not have complete knowledge of this business. If you get good information about it once. Just you have to work a little carefully, there is no hurry of any kind, due to this haste, many investors lose their losses.
Do you know what is the reason ?
The biggest reason for this is – lure. Everyone has been hearing a saying since childhood, greed is bad. This saying fits right into this business. So it is important that before investing in this business, you should take care of some things.
- You must have a bank account, demat account, before investing in a shares market or stock market. Only then you will be able to start in this business.
- Before buying shares in any company, research its company, how the company whose shares you want to buy is doing business in the company market, how is the performance of that company, how is the management of that company and once the previous record of that company is also checked How is the history of that company, that is, before you invest, get complete information about that company, only then think of buying stock in that company.
- Investors should always invest in companies with good fundamentals.
- People investing in the stock market / stock market should always control their greed as investors often lose money due to more greed. In such a situation, while investing in the stock market, you always have to work with a cool head and do not make any hurry of any kind.
- Because there are many occasions when you think that you will earn a little more, then you will sell your shares and in this round, their prices are suddenly reduced and then you have to bear the loss.
- A better option for new people investing in the stock market is that they should invest long term, according to the experience of some market experts, long term investment has always given good returns to investors. For this reason, you can also keep an eye on long term investment.
- Investors should fix a target price to buy shares as well as sell them. And the shares purchased should be sold only when it reaches the target price.
In this article we have learnt about what is share market and why it is important. If you want to enter into the share market world then prepare yourself well and and pros and cons of the share market. If you are already working with share market then comment down below.
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