How
stock market change your financial status Why I choose this topic because most
of the peoples don’t have any idea about the stock market, so I thought I want to share
something to you, the stock market is a very big topic I just tell you some basics. First
of all, what is the stock market? The stock market is nothing shares are buying and
selling That is actually happening in the share market. You have to know some basic
things like shares, trading account, Sensex,
nifty, etc. I will say one by one, first you should know about what is share? Share
is nothing, for example just imagine you have a company the name by ABC the company’s
share is 10 lakhs but you have only 5 lakhs balance of 5 lakh how will you get? You
can take a loan from the bank, appoint your partners and get shares from there’s
and another thing you can issue shares, example 1 share is issued for 100 rupees,
you issued 5000 shares, and you will get 500000 RS from there, That’s it. I hope
you understand what is share.
How the stock market works
The stock market is a chain process that is very big, first of all, you should know about India’s Top 2 stock exchanges that have been called NSE and Bombay stock exchange. These 2-stock exchanges are the indies
topmost stock exchanges, NSE (National stock exchange) was established in 1992
in Mumbai, and Bombay stock exchange is founded in also Mumbai in 1875, Bombay stock
exchange is the oldest stock exchange in India. These 2-stock exchanges have 2 indexes.
NSE index is called Nifty, and Bombay stock exchange index is called SENSEX, these
indexes listed a lot of companies, NSE is listed approximately 1700
and more companies and the Bombay stock exchange-listed 5400 and more
companies. Nifty and Sensex are selected as some best companies, that will show in
stock market rates, you all saw that.
What is SEBI
SEBI (Security exchange board
of India) SEBI Can also be called the Regulatory authority of the stock exchange all
companies should get approval from SEBI and follow their instruction. Only companies can register on to the stock exchange SEBI will give a value
for your stock that is called Face value. That face value is your share value If the market value will be increasing the company's
profit will also increase.
Who can buy shares
how?
Anyone can buy shares in the stock
market, before that you should have good knowledge about the stock market and their
procedures. The common people can’t buy shares his own desire there have a Stockbrokers stockbrokers can help you buy and sell your shares the commission
has to charge for stockbrokers, that’s called brokerage rate. First of all,
you should have a bank account, then you have to open a trading account, and
you have to open a Demat account. These accounts are important for buying
shares, stockbrokers will help you for opening these accounts. these are some basic requirements. You will get some rights from your investing company
like ownership, voting rights that depend upon your shares, who invest more
shares will get major rights from the company.
Which is best-
trading or investing
I don’t say trading is the
best option or investment is the best option Because it’s your choice you can
choose which is better, trading is always going up and down some times shares
will increase, then it will decrease there is no stability. Then looking for
investing, investing is 2 types short term and long term, in my personal opinion
I suggested for you long-term investing because in the long run the company
will increase their profit then you can get more return from that, but you
should have aware of your investing company. May be company will lose in
future or get more profit in the future, so you should very careful here. If Profit will increase in the company the demand
of shares also will increase.
Risk factor
There is have a lot of risks because the stock exchange we can’t predict, there is no stability, any time company will be a loss,
so you should have good knowledge about the stock market. Only start with small
investing after getting good knowledge about the stock market you can invest more.
I hope you understand what is the stock market, I have just given here some basics things because the stock market is the
very big topic.
I hope this blog will helpful
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