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What is Stock Market and how to make money from it?

Do you know what is the stock market ? You must have seen people talking about it often. And often you have seen many posts related to it on the internet, but do you know that most of the posts do not give you the right information about this thing, but instead of half the incomplete information there, it puts you in a dilemma.

Many people want to invest in the Share Market but due to lack of proper knowledge about the Stock Market , they either avoid investing in the Share Market and do not invest money in the Share or lose their money by investing in the Share Market. . Stock market or stock market has many names and it is known by different people by different names. ” Share ” which is an English language word. The simplest and easiest meaning is “part”. And what the stock market is, it works on the principle of ” share “.

BSE (Bombay Stock Exchange) is considered to be the largest stock exchange in India. It was established in 1875 as India’s first stock exchange. India’s second stock exchange is NSE  (National Stock Exchange of India). It was established in 1992 as India’s first demutualized electronic stock exchange.

As we know that people know the stock market or the stock market by different names and this I have already told that the meaning of the share directly means “share” can be called share in a company in the stock market.
For example, suppose a company has issued one lakh shares. Now if a person buys all the shares in that company, he becomes the owner of that share. For example, if a person buys 40,000 shares out of 1 lakh in the company, then his share will be 40% in that company. And he will own that 40% share.

Stocks show the individual’s stake in any company. And whenever that person wants, he can sell his shares to others or buy another person’s shares.

The value of shares or stocks of companies is recorded in the BSE. The value of stocks of all companies keeps decreasing or increasing according to the profitability of the company. Maintaining control over the entire market is done by the Securities and Exchange Board of India (SEBI). Only when SEBI gives permission to a company can a company issue its initial public offering, no company can issue IPO without SEBI’s permission.

When does the company appear in the stock market?

In order to get listed or visible in the stock market, the company has to make several agreements in writing from the Exchange, under that agreement, the company has to give information of its activities to the market from time to time, such information in these information also This affects the interests of investors.

The valuation of the company is done on the basis of the information given by the company and on the basis of this assessment, the prices of the shares of that company fluctuate as demand increases. If any company does not follow the rules of the listing agreement and is found guilty of violating the rules, then the action will be taken by SEBI to remove them from the exchange.

Apart from this, the company has to go through many things to appear in the stock market. Such as the complete record of the company for the last 3 years, the company’s share in the market above 25 crores, the capital of the applicant company for IPO is at least ₹ 10Cr. And ₹ 3 CR for FPO. Should be Apart from all these things, many things are taken care of when the company is listed. For listing of a company, it has to follow strict rules.

What are the types of shares?

There can be many types of shares and different people define them differently. But we can divide the share mainly in 3 forms. Let us know the types of share: –

1.) Common Shares – Anyone can buy them. And can sell if needed. These are the most common methods of stock.

2.) Bonus Shares – When a company makes good profits and that company wants to give some share of it to its shareholders. Instead she does not want to give money and if she gives shares, it is called bonus share.

3.) Preferred Shares – This share is brought by the company only to certain people. When a company needs money and wants to raise some money from the market, the shares it will issue will give the first right to buy them only to certain people. Like employees working in a company. Such shares are considered very safe.

How to buy stocks

To buy stocks, first you have to decide whether you would like to buy stocks yourself or take the help of a broker. Only then can it be carried forward.

If you take the help of a broker, then first you have to open your account, which is called Demat account. Which you can get opened through your broker. There is a lot of benefit in buying a stall through a broker, one is you will get good guidance and second you will get complete information about the stock market. Brokers take the money or share of profits in the stock to help you and stock information etc.

There are only 2 stock exchanges in India. NSE and another BSE . Only companies which are listed in them can be bought or sold in those stocks.

Whenever you buy and sell a share, its money comes in your demat account. Your demat account is linked to your bank account. You can easily send money from your demat account to your bank account.

What are the types of trading?

As such, there can be many types of trading. But mainly 3 types of trading are well liked and used by people.

1) Intra-day Trading : Trades that are completed within a day are called intra day trading. In intra-day trading, the act of buying and selling stocks on the same day is done.

2) Scalper Trading : The trades that are sold within minutes of buying are called scalper trading. In this, shares are bought and sold within 5 to 10 minutes. The profit in this type of stock is high. But the profit can be increased only if the amount invested in it is high. There are more chances of loss as well because the amount charged is also high.

3) Swing Trading : In this the process of trading is completed in a few days, weeks or months. After purchasing the stock, investors keep it for some time like week or month. After that, we wait after the stock price rises and when the right price is found. So let’s sell it.

Stock Market is considered a dangerous sport by the people. In which the man only drowns but it is not so at all. This notion is completely wrong. If invested in the stock market with proper methods and restraint, then one can make a lot of profit in this thing. But before jumping into it, it is very important for the person to get as much information about it. Incomplete information has always been dangerous.

But this does not mean that one should not invest in the stock market or there should be a different talent or ability to invest. Anyone can try and learn about the stock market and invest in it and with their experience, can become a maharathi in the field of investment in the stock market.

Also Read This – What is NIFTY and how is it different from SENSEX?

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