Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Hello friends, we all know about share market. In this article, we will understand about share market, equity market and stock market in detail.
Stock Market:- The stock market is a place where people buy and sell parts of a company, called shares or stocks. When you buy a stock, you own a small part of that company and can make a profit if the company does well.
Equity Market:- The equity market is a part of the stock market where shares of companies are traded. It focuses on buying and selling ownership in companies, giving investors the opportunity to grow their money based on the company’s performance.
What is share market:- Share market, stock market or equity market, all three of these have the same meaning where you can buy or sell shares of a company. Buying shares means you are buying some percentage ownership of a company. That means you are becoming the owner of that company. If that company makes profit, you will also get some percentage profit. If that company loses, you will also have to bear some percentage loss. For example, if you are opening a company, you invest ₹100000 in that company and take some money from your friends, they will also give you ₹100000. Both of you invest equal amount of money and both will get 50-50% partnership. Here, whatever profit your company will make in future, you will get 50% and your friends will get 50% of their shares. In this case, your 50% share will be given to you. You gave 50% shares to your friends and you keep them for yourself. The same thing happens on a large scale in the stock market. Here, the only difference is that there you go to your friends to get money, here you go to the whole world and say come and buy shares in my company.
The share market started about 400 years ago. At the time of 1600 AD, there was a postal East India Company, like the British India Company. Which is controlled by the Netherlands today. At that time, people used to do most of the business through ships. At the time when the map of the whole world was not discovered, this company used to send ships to discover other worlds. At that time, this company did not have enough money to travel such a long distance. So these people came up with an idea and asked the common people to invest money on my ship. Whatever treasure comes from other countries, you people will also get some of that treasure, that is, you people will also get some % share from it, but this work used to be very risky because at that time most of the ships used to get lost or break down. They were looted or anything could happen. Investors thought that it is better to invest money in 5 or 10 ships than investing money in one ship. One of these ships will definitely come back. So this is where the share market starts.
Stock Exchange is a place, a building where shares of a company are bought and sold. There are two types of markets here. First primary market and second secondary market.
Primary Market:- It is the market where the company itself goes and sells its shares.
Secondary Market:- You can buy shares and sell them to other people.
How Many Shares Can a Company:-
Here the share value of every company is equal. Now it will depend on the company that if the total value of that company is one lakh, then it can be 1 lakh shares of ₹ 1 or it can be 50000 shares of ₹ 2. It depends on the company.
India Stock Exchange:-Almost
Every country has a stock exchange
But there are two popular stock exchanges in India
One is Mumbai Stock Exchange
The other is National Stock Exchange
What Is Sensex:- Sensex shows the average trend of the top 30 companies of Mumbai Stock Exchange, whether the share price of those 30 companies is going up or down by averaging them out.
Sensex is a Sensitivity Index
In the last 50 years, 30 companies have gained very fast in Sensex
There is also an index which we know as Nifty Fifty, it shows the up and down trend of the share price of the top 50 companies
How To Sell Your Company,s Share
If a company has to sell its shares on the stock exchange, then it is called public listing of that company
If any company comes for the first time, then it is called IPO:- Initial Public Offering, offering its shares to the public for the first time. How Can You Buy Share:- How can you people invest in the share market, earlier there was a lot of difficulty in purchasing shares, but now At present, you should have three things
1.Bank Account
2.Trading Account
3.Demat Account
Bank account is required because you need money
Trading account is required so that you can trade and invest money
Demat account is used to store the shares you are buying
Investing Vs Trading:-Investing and Trading are two different things
Investing means you invest a lot of money once and leave it for a few years
Trading means you invest a lot of money quickly and withdraw two or four percent of it in a single day
Trading:-It is short term
Investing is long term
To learn trading
Price Action,
Technical analysis
Chart Pattern,Support Resistance Volume RSI
To learn investing:- Fundamental Analysis Risk Management has to be done
Is Share Market Gambling:-Many people compare Share Market with gambling, many people call it Gambling It is said because there is a lot of risk in it.
If people invest or trade without learning about the market, then it is like gambling because you do not know how the company will perform in the future or not. You just listen to others and say that the company is doing well and we invest in the stock market without thinking.
This work should not be done, it is a very risky work. You enter the market without learning anything and without understanding anything and then you lose money, then later you say that the market is gambling.
Some people work hard day and night in this field, such as traders and experts who have more knowledge about the stock market, they will obviously perform better because they know how it all works.
So what I mean to say is that the stock market is not gambling. First spend time learning the stock market, only then you will be able to succeed in investing or trading! Otherwise, after doing it for a few days like us, you will again say that the share market is gambling. Share market is a gamble!
In this article, we have discussed the basic details of the share market. Do let us know by commenting how you felt after reading this article and for such share market related articles, keep staying with 24 news campus online. Thank you.