What is share Market

What is a Share/Stock market?
This is the first question that arise in people’s minds when they start learning about getting good returns on their investment. The popularity of shares stems from the fact that they provide greater returns. Shares are more preferable than property investments because they are more liquid. Let’s just start with the basics and learn more about shares

A company’s ownership is represented through shares. That means how much the company worth. Stocks are sometimes known as “equity” or “shares.” When someone buys stock in your firm, they become a shareholder. Major shareholders (people who earn big chunk of the company) manages a firm and participate in critical decisions such as planning future projects or deciding whether or not a company should be sold.

STOCK MARKET:
The stock market is a marketplace where consumers may buy and sell equity shares from other stock market participants (buyers and sellers of stocks). You should be aware that corporations do not allow the general people to sell or acquire their stock. They only let specific individuals (Brokers) to do so. In exchange for a commission, a broker purchases or sells investments/stocks on behalf of the investor/trader. Only brokers are permitted to purchase shares from them directly. Some of India’s most well-known brokers are Zerodha, Groww, Sharekhan, Upstrox, and Angel Broking.

There are two types of stocks:

  1. Common stocks: When you buy a company’s common stock, you have the ability to vote at shareholder meetings and earn dividends.
  2. Preferred stocks: Preferred stocks do not give you the power to vote, but they do give you a stronger claim on assets and earnings than regular stocks.

Some important points:

  • India’s two main stock markets, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), are where the majority of stock trading takes place.
  • You must pick a broker first to start investing. Your broker will open your Demat and Trading accounts for you, which are both necessary to begin your investing journey.
  • In the stock market, you may either hold your shares for a long time or buy and sell them in a single day.
  • The settlement cycle is formatted as T+2. That implies the entire transaction cycle takes around two days to complete, from start to finish. If you sell your shares, the proceeds will take two days to appear in your account.
  • In India, trading in the stock market is restricted from Monday to Friday, between 9.15 a.m. to 3.30 p.m.

When you trade in the stock market, the stock price fluctuates because the stock price is determined by the stocks perceived worth, or business. When the stock price of a corporation rises, it means that someone, or a group of people, has placed a purchase order for that stock. However, a stock’s movement is influenced by a variety of market dynamics. This is only one of the many methods to profit from stock investment. After you buy a stock, the percentage increase in the stock price reflects the same percentage gain in your invested capital, and vice versa.

It is advised to learn all the basics before invest a penny in stock market. You can go through our other articles to learn more about the basic and high end terminologies related to the same.

• In the stock market, you may either hold your shares for a long time or buy and sell them in a single day.

• India’s two main stock markets, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), are where the majority of stock trading takes place.

• The settlement cycle is formatted as T+2. That implies the entire transaction cycle takes two days to complete, from start to finish. If you sell your shares, the proceeds will take two days to appear in your account.

• To begin your trading career, you must first pick a broker. Your broker will open your Demat and Trading accounts for you, which are both necessary to begin your investing adventure.

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