What is share market? How to invest money in stock market?

What is share market?

 The stock exchange was established in the year 1875.  Share market or stock market is a market where shares of many companies are bought and sold.  According to the market, due to changes and fluctuations in many things, the prices of shares also increase and decrease due to which some people here either earn a lot of money or lose all their money.  Buying shares of a company means becoming a partner in that company.  Due to which the growth of that company and its profit becomes your profit.  This profit and loss is monitored every second so that a strategy is employed to earn maximum money and minimize loss.

 Whatever money you invest in the share market or say the number of shares you buy, accordingly you become the owner of some percentage of that company.  Every company has its own market value, according to which the price of its shares is also determined.  However, it changes all the time due to which one’s profit or loss is calculated.  All this work and buying and selling is done through a network.  Due to the increase in technology, now you can know the status of shares even sitting at your home and can also buy and sell shares very easily.

importance of stock market :

 Objective and Operation: Stock market is also one of the important place for companies to raise money.  In this, companies issue some part of their company in IPO in the stock market.  In exchange for giving share in this, you get money.  There is no need to return these money back to the companies and the companies use the money only for their own progress and not for accumulating the debt amount, in which they not only have to repay the money but also have to pay interest.  Is.

 Effect on price: In the stock market, the price of a stock is initially decided by the company, after which its price increases and decreases through trading by people.  The price of a stock usually depends on the company’s future profit prospects as well as the inflation and economy of that country.

 Crash: A crash in a stock market means a rapid fall in its price.  Some of the biggest reasons for this are the poor performance of the company and the possibility of losses in its future.

When should you buy shares?

  Before buying shares, it is necessary to have knowledge of this market and the way it works.  This knowledge includes information about the way the market works as well as how and when to invest and which company investing in can bring you profits.  Even if you do not make profit, you can avoid loss.  Only when you are confident that you have acquired accurate and better information about this subject, take the step of investing in it.

 There is also a risk of risk in the stock market, hence you should invest here only when your financial condition is good so that future losses do not make much difference to you, although it is not necessary that loss is certain.  If you invest wisely, you can earn a lot of profit.  As your knowledge and experience in this field increases, you can gradually take the risk of increasing your investment.  Along with having knowledge of the field, if we talk about important things, then it is also essential to have the skill that you can do company analysis in a better way so that along with knowing whether the company is a fraud or not, you will be aware of its profit loss.  Only after seeing the growth graph of the company, you will be able to trust it and take the risk of investing your capital in it, which is very important.

How to invest money in stock market?

 Along with knowing what is share market, you need to keep many things in mind. If we talk step by step, then to buy shares in the share market, you have to create a demat account.  There are two methods for this.  Let us know about these methods in detail-

 first way :

 You can open a demat account by visiting a broker.  Basically our share money is kept in the demat account.  If you are investing in the share market then it is very important to have a demat account.

 When the company makes profit, the value of your purchased shares will automatically increase.  Accordingly, if you sell your shares and want the amount received from it, then it will come to your demat account only.  Then if you want, you can transfer the money from that demat account to your savings bank account.  This demat account is linked to your savings account.  To create a Demat account, it is mandatory for you to have a savings account in any bank and for proof you will need a copy of PAN card and address proof.

 second way :

 Actually, you can open your demat account by going to any bank.  But if you open your account through a broker, you will benefit more.  This is because you will get such good support and secondly, according to your investment, they suggest you a good company where you can invest your money..

What is Sensex?

 Sensex is the benchmark index of our Indian stock market which was started in 1986.  It also explains the rise and fall in the prices of shares listed in the Bombay Stock Exchange (BSE).  It is only through Sensex that we get information about the performance of the 30 largest companies listed in it.

 What is Nifty?

 National Stock Exchange Fifty (NIFTY) is a word made up of two words, National and Fifty.  It is also called NIFTY 50.  NIFTY is an important benchmark of the National Stock Exchange of India.  This is an index of 50 major shares listed in NSE.  Mainly NIFTY keeps track of the shares of 50 major companies of the country and only those 50 company shares which are listed can be seen in it.

Leave a Comment