BASICS OF STOCK MARKET

SHARE MARKET DEFENITION

The stock market, also known as the share market, is a platform where stocks or shares of publicly traded companies are bought and sold. Companies issue stocks to raise capital and find their operations, and when people purchase these stocks, they become share holders of the company. The stock market provides a way for individuals to invest their money in these companies and potentially earn a return on their investment through dividends . The stock market operates through a network of exchanges, such as the New York Stock Exchange and the NASDAQ, and is regulated by government agencies to ensure fair and transparent trading practices.

HOW TO START INTO SHARE MARKET:

To start stock market , as follows :

01 . download a broker app in your mobile.

02 . create your DEMAT account.

03 . link your net banking account with the app.

THE NECCESSARY THINGS THAT NEED TO OPEN THE APPLICATION ARE AS FOLLOWS:

01 . PAN CARD.

02 . AADHHAAR CARD OR other identification proofs.

03 . internet banking.

These are the neccessary things you need for the starting of a broker app.

HOW TO BUY STOCKS

There will many questions in the mind of a new investor, whereas this will be the major question.

There are certain options are there in the process buying an share in the market.

01 Delivery.

02 Intra day.

WHAT IS DELIVERY MODE BUYING :

This type of buying the stock you can keep the stock upto the need to sell. ( In simple words it is a long term investment option ).

WHAT IS INTRA DAY TRADING:

Intra day type trading is a SHORT TERM INVESTMENT which can be bought and sell within a day. (When the market starts you can buy the stock which you want to buy and it can be sell before the end of the market closing time).

WHAT IS BULL AND BEAR?

BULLISH :

Bullish , when the value of the stock increased it is called bullish stock.

BEARISH :

Bearish , when the value of the stock decreases rapidly is known as bearish.

If the market price is increase rapidly the bull picture will be displayed in your stock page , and next day if it went low the bear picture will be changed.

IMPORTANCE OF STOCK MARKET:

Today share market is become one of the integral part of the world’s economic condition. The development of the country is lot depend on this share market , because the people are very confidential in investing.

After listing the shares of the company in the stock market there are always buyers and sellers are available for them. The stock market is a platform that the availability of liquidity there and it always remains. Due to this liquidity, investing in the share market makes it easier way to invest and get benefits from it. Such liquidity is not available in selling properties and assets.

THE GLOSSARY :

1 Stock: A share of ownership in a company.

2 Index: A measure of the performance of a group of stocks.

3 Bull market: A market in which stock prices are rising.

4 Bear market: A market in which stock prices are falling.

5 Dividend: A distribution of a company's earnings to its shareholders.

6 IPO: Initial Public Offering, the first time a company's shares are offered to the public.

7 Volume: The number of shares traded in a day.

8 Blue chip: A large, stable company with a long history of reliable performance.

9 Broker: A person or company that buys and sells stocks on behalf of others.

10 Market capitalization: The total value of a company's outstanding shares.

11 P/E ratio: Price-to-earnings ratio, a measure of a company's valuation based on its current stock price and earnings per share.

12 Sector: A group of related companies within a specific industry.

13 Short selling: The practice of selling borrowed shares with the hope of buying them back at a lower price.

14 Volatility: The degree to which a stock's price fluctuates over time.

15 Yield: The return on an investment, usually expressed as a percentage.

THANKS FOR READING