In the stock market, people can buy and sell shares of a company. Buying shares gives you the right to a small part of a business. If the business is successful then the value of your shares can increase and you can sell them at a good profit. If the company performs poorly then its value can fall and you may lose money. The goal of investing in the stock market is to increase your wealth over time.
If you want to go into the stock market then what should you do first?
There are many people who do not have any knowledge about the stock market at all, they do not even know what the stock market is.
Sometimes we have heard that the market went up, the market went down, people made profits, people suffered losses, but how does it work, how to invest in it, how to trade in it?
So in this article we are going to give basic to advanced knowledge. Those who want to learn about the stock market from today, want to learn to increase money step by step,
This article is very important for those people, you guys must read this article till the end! Today in this article you will also understand the ABCD of the stock market.
The stock market is understood as a market, the stock market, which some people also call the share market, some people also call the equity market.What are Stock Market Basics: Beginner’s Guide
What is a stock? Stock simply means a stake in a company.
If you have a stock or share of a company! Share means ownership. You become a small owner of a company but you do not become the owner of the entire company. You only have a small part of it. Whoever has more shares in the company will be called the owner of the company! Suppose there is a private limited company with a sweet shop, now this private limited company needs money because what do they have to do now
Suppose you will open 100 more shops, now you need money for that, so what will you do to get money, you will go to the exchange, exchange means that we will give the share of our company and in exchange of share we need money, so this private limited company also had shares, now they also want to exchange shares in exchange of money, that give us money, we will give shares, now who will give this money, public, now there are different people in public also, if you say public, then there are people like you and me, basically there are people like you and me, if we say public, then you and I will come under the participation of public in this, in retail, retail category which sells shares, so there is another category which we call HNI category
The one who wants to do business needs money, so there are many ways to get money, you will say that he could have also taken a loan, he could definitely take it, one way is this loan and shares There is another way of raising money through Stock market exchange. When we raise money for the first time through share exchange
Money comes into the market from the public, so we call it IPO which we know as Initial Public Offering. Like there is a company (LIC), what does it do now? It also invests a lot in the stock market because it has a lot of public money. Big banks also invest. There are big funds, mutual funds that invest. So what happens is that they become institutional buyers. We can also call it (QIB) (Qualified Institutional Buyer). So you guys can understand that the money that will come will come from the public only. But the public has three faces! There is retailer participation. You and I and many people like us have HN (High Individual Network) and a qualified institutional buyer has come. This is a good thing. You guys are able to understand this much. There is an exchange in India for this process. Like any stock market will be listed on an exchange. The name of that exchange is NSE (National Stock Exchange) and BSE, Mumbai Stock Exchange. These are the two stock exchanges in India. If a Lalji was running a shop, let’s say he was running the shop for the last 45 years. Now he thought I have become very famous but I need money. Today I have 10 shops but I want to open 50 or 100 shops and it will require a lot of money and I have to open them myself. So he could have taken money by taking a loan or he could have taken it in exchange of shares. Now he sold his stake in the company and sold some percentage of shares to the public. Now that share has come to the public. If he keeps selling shares continuously and it keeps coming to the people, then people will become its owner
This is what happened with Steve Jobs. Steve Jobs started Apple. Everyone knows, but do you know that there was a time when Steve Jobs was fired from Apple?
You will say how can this happen? Exactly this can happen.
If this Lalji sells all his shares or sells majority shares, then he will no longer be the owner of this company. Some other person will become the owner of the company who has those shares. So the owner of the company is always the one who has the shares.
You can say that Mukesh Ambani is the owner of Reliance company because even today he has a large stake. The one who has more shares will be the owner. If his shares decrease then he will no longer be the owner of the company. It is important for you people to understand this.
Share means ownership. Suppose if you are the owner then what will be the benefit to the owner? If the company becomes worth crores then the valuation of the company will increase.
Now you will say what is valuation? What is this market cap? Suppose this company of Lalji had one lakh share market, as we just told, Sweet Shop Private Limited Company
1 lakh share is market, now when Lalji issued IPO, for example one share was worth ₹ 100, then you will say that the market cap of the company has become one crore rupees. But if the price of its shares increases then how will the value of this company increase? Share price depends on many factors but the most important thing is how much the business is growing and progressing.
In the long term, the share price of a company can be affected due to some news or many external factors but ultimately if you follow the graph of the company’s stock, if the graph of the company’s earnings is going up, the price will also go up and if the earnings are falling then the share price will fall. In the short term, surely you can say there can be a difference!
The share price of the company.
All I want to tell you is that in the short term it may happen that due to some news or due to some media hype in the market or something happened with the company which may affect the share price for the short term but in the long term if you follow the share price of the company and see the graph of its earnings, then the graph will start going upwards.
So why do you people want to invest in the stock market? Have you been influenced by anyone?
You should not take investment decisions by getting influenced by anyone. You should always take investment decisions according to yourself. People get influenced and say that so and so people have invested money in this stock because people are doing this. If you also start doing this, then a big scam can happen with you and this is happening with many people. I want to tell you how you should take the first step in the stock market.
What is happening nowadays, you will see that you people get messages from some unknown number. There are many Telegram groups in which you will be shown that we will give you trading tips and you will earn a lot of money. These people are big frauds. They are not SEBI registered professionals. They are not registered advisors. They are cheating you. How are they doing this? I would like to explain to you.
First of all let’s talk about SMS! You can send a simple SMS to people’s mobile like these people have 10 lakh data, you will say data of 10 lakh people, many people go to such website where they put their phone number, from there these people take out your number And these people make different groups and after that start giving advice Like today bank nifty will go up, people of other group were told that today bank nifty will go down, he will tell you people to buy CE at such and such price, they drafted the message and followed it Now people of this group got the message, these people bought it, if PE market goes down then they will get benefit, but today market did not go down, so these people lost money And he will tell people of other group to buy it today, if market goes up then they will get benefit, but today market went up and these people got benefit and people of this group will say that the message which came was very good Now he will tell people of these groups to join our paid group Do it on Telegram, many people will join it and give money and nothing will happen because let me tell you one thing, if someone generally knows whether the market will go up or down, he will become a god.
The market depends on many dynamics. And Warren Buffett clearly says that the stock market is a tool, it takes money from passionate people and gives money to passionate people.
Young people do not have passion, they are not passionate.
So money will be taken from them and money will be given to passionate people. And you must have heard from many people that we invested money in the stock market and we suffered a loss. Let me tell you one thing that the stock market does not keep money in its pocket. In the stock market there is a buyer and a seller. If the buyer suffers a loss, the seller benefits. If the seller suffers a loss, the buyer benefits.
Now we will move forward step by step from here!
Step 1:- The first mistake that people make is that as soon as they hear the name of the stock market, they start buying shares. You guys should not do this.
If you want to learn to play cricket, then you have to go to the ground and practice.
This means that if you really want to get into the stock market, then first of all you have to invest because investing in shares is a good thing but you need quick money. Someone invested money in a fake company and his money increased 10 times. In a hurry, they invest money in water shares and then what happens, they lose money. You guys should be interested in whether to invest money in the stock market or not.
Step 2:- You guys should do index investing in the beginning. Now you guys will say what is this index investing.
Just like Bank Nifty is an index, similarly there is an index named Nifty and what is Nifty? Nifty India’s top 50 companies come under it, which we call Nifty 50, so an index is formed by combining them.
There are many types of mutual funds. There are debt mutual funds, hybrid mutual funds, you will get international funds, small cap, large cap, you will get confused in starting your trading, do not focus, first learn the stock market, become a little mature, only then start investing in the stock market and slowly start trading as well
Conclusion:- Information about the stock market has been given in this article. What did you learn by reading this article, do tell us by commenting. Thank you
