What is Share Market and Earn Money
Share Market: It is a bit difficult to earn money without investing but it is easy to earn money by investing in share market.
Today every person wants to earn a lot of money to live a happy life, for which he also works hard in the job, but even after working hard in the job, he is not able to earn enough money to live a happy life.
Click here for video What is Share Market?
But the stock market is such a well of money that it can quench the thirst of the whole country. People who have a good understanding of the stock market earn crores of rupees from the stock market.
If you also want to know what is share market, how to learn share market, how to invest money in share market and how to earn money from share market, then definitely read this article till the end. In this article, in addition to all this, we have told you about the mathematics of the stock market and some important words related to the stock market, so that you can get a better understanding of the stock market.
So let's start this article and know what is share market
Share market is made up of two words, one share and the other market. In which share means share and market is the place from where buying and selling is done. Stock market literally means a place to buy and sell shares.
Share market is such a market from where the common citizen can buy and sell the share or share of the listed company. Any person who buys or sells shares of the company is called an investor. There are two major stock exchanges in India namely Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Investors can buy and sell shares of companies listed in BSE and NSE through a broker.
Whatever work is done in the share market is done with money and whatever profit or loss the investor gets is also done with money. Many people become millionaires overnight by investing in the stock market, while many people lose their wealth. Stock market is always risky. Therefore, to invest money in the stock market, it is necessary to have sufficient knowledge about the stock market.
Share market is also known by the names Stock Market, Share Market, Equity Market, Wealth Market etc. If you have a good understanding of the stock market, then you too can earn crores of rupees from here.
Definition of Share Market
Share market is such a market where the general public invests their money in buying shares of a company to earn profit.
How to learn share market (Share Market Guide)
As easy as the stock market looks from outside, it is not as easy from inside. There is always risk in the stock market. You can earn a lot of money from the stock market and you can also lose all your money.
But talking about today's time, the people of India are also investing money in the stock market, and many people want to learn about the stock market. Because they can make passive income from the stock market.
Most people look for shortcuts and easy ways to learn, but it takes many years for people to understand and learn the stock market properly. But a beginner investor must know the following essential things to learn the stock market.
#1 – It is important to learn before investing
You people will also know that investing in the stock market is always risky, but if you first learn about the stock market well then it will be easy for you to invest, there are many mediums available today to learn. You can read blogs related to share market on internet, watch videos. Investing in the stock market without learning can be foolish.
#2 – Do your own research before investing
A new investor always makes the mistake that he invests without doing research so that his money gets drowned and he understands that he cannot earn money from the stock market.
Whenever you think of buying shares in the beginning, do a deep research. Get complete information about the company whose shares you are buying. Compare it with one or two companies and then come to the conclusion whether to buy the shares or not. And yes, don't buy shares on the advice of others in the beginning.
#3 - Start with less money
Do not invest too much money in the beginning. You can invest in the stock market even with Rs.100. In the beginning, you invest very little money and gradually increase your investment as your experience increases.
#4 - Don't Stop Learning
Any person who thinks that he knows everything but in reality he does not know anything. The habit of continuous learning can take you to great heights, so never stop learning.
How to invest money in share market
To invest money in the stock market, first of all you need a Demat Account and Trading Account. You can also open Demat Account from any broker or you can open your Demat Account by going to the bank.
Our suggestion is that you should open your Demat Account with discount brokers like Zerodha, Upstox, Groww etc. Because these brokers get your Demat Account opened very cheaply. Some discount brokers also open demat accounts for their clients absolutely free of cost. You can open trading account along with demat account only.
Just as it is necessary to have a bank account for money related transactions in the bank, in the same way it is necessary to have a demat account and trading account for share transactions in the stock market. The shares bought by us are held in the Demat account and we can transact stocks or shares in the stock market through the trading account.
Read Also - How to trade in indian share market
There are mainly two stock exchanges in India, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), from where shares are bought and sold. Those who are brokers are members of the Stock Exchange. We can trade in the Stock Exchange only through the broker, or we can say invest money in the stock market. We cannot directly buy and sell shares by going to the stock market.
You can invest money in the stock market by opening your demat account with a broker. Brokers provide you a platform to invest in the stock market. You can start investing in the stock market very easily by opening your Demat Account in mobile applications like Upstox, Zerodha, Groww, Angleone.
Who is the regulatory body of the stock market
The Indian Stock Exchange is the regulatory body - SEBI (The Securities Exchange Board of India), it was established in the year 1992. In the Indian Constitution, SEBI is an institution created by the SEBI Act 1992, which oversees and conducts business in the stock exchange. The main objective of SEBI is to protect the interests of the Indian stock investors and to secure the investment in the stock market.
How to earn money from share market
As you have read in the article so far, you can buy shares of any company in the stock market and if the share price increases, you can earn money by selling the shares. This is the way to earn money from share market. Lakhs of people earn crores of rupees from the stock market.
If you do not have much knowledge about the stock market, then you can initially earn money from the stock market by following the following tips –
- Start investing in the share market with a small amount. It is not necessary that you invest in the stock market only when you have good money. In the beginning, you should always invest small amount only.
- Initially invest in shares of such companies which are fundamentally strong. After a few years of experience, you can take the risk.
- Do not panic when the market falls and do not sell your shares in a hurry.
- Do not expect more returns in the beginning, it means not to be too greedy.
- There is both profit and loss in the stock market, so learn to control your emotions. Stay away from buying and selling shares in haste.
- Stay updated with the news of the stock market.
- Invest for long term.
- Invest according to the future, the company which you think will do well in the coming time, then you can earn good money by investing in the shares of such a company.
- Keep increasing your investment gradually.
- You can also invest in IPO to earn money in the stock market.
Stock Market Maths
There are two types of work in the stock market, one is to buy shares and the other is to sell shares.
All big or small companies need funds to grow their business. Companies are listed in the stock market under SEBI rules to raise funds and make their shares public to the general public. SEBI is an organization that keeps an eye on every activity happening in the stock market.
When the shares of the company come in the Share Market, the investors buy the shares and hold the shares until the share price increases. And when the share price increases, they earn profit by selling the share.
There are mainly two stock exchanges in India, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), through which companies get themselves listed in the stock market and shares are bought and sold from here.
No investor can buy the shares directly from the stock market. He has to go to the broker to buy the shares. The broker is a member of BSE and NSE which provides the platform to the investor to invest in the stock market.
To invest in the stock market, the investor needs a demat account and trading account, which is opened by the broker to the investor.
All the shares that the investor buys from the stock market are safe in his demat account. But the investor needs a trading account to buy and sell shares from the stock market. Without a trading account, an investor cannot trade in the stock market.
Trading account is linked to our bank and demat account. When the investor buys shares, his money is deducted from our bank account and the shares come into the demat account and similarly when the investor sells the shares, the shares are deducted from the demat account and the share money comes into the bank account .
So this is the complete math of share market. This is how the stock market works.
Share market guide
- It is important to learn before investing.
- By doing your own research, you can choose the best stock.
- Planning should be done well before investing.
- Start investing with less money.
- Do not invest in the shares of only one company, Diversify your investment.
- Invest according to your risk appetite.
- Too much greed can also give loss in the stock market.
- Control your emotions, be prepared for losses as well.
- Ignore the rumours.
Few words related to share market
There are many such terms related to the share market, about which a beginner investor does not know very well. We have explained some important words related to the stock market further in the article.
Share – Share means share. When an investor buys shares, the percentage of the shares of the company that the investor buys is the same percentage as the investor's share in the company.
Broker – Broker is called Dalal in Hindi. Brokers provide a platform to the investor with the help of which he can do trading in the stock market. Investor cannot directly invest in the stock market. To invest in the stock market, the investor has to take the help of a broker.
Mutual Fund – A new investor does not have much knowledge about the stock market, then he can invest in the stock market by investing his money in mutual funds. Mutual Fund is a team of some people in which the Expert Fund Manager of the stock market lives. When an investor invests in a mutual fund, the team of the mutual fund invests the investor's money in the stock market. The chances of getting profit in mutual funds are high.
IPO – The full form of IPO is Initial Public Offering. Whenever a company makes its shares public for the first time, it is called IPO.
Demat Account – A demat account is required to keep your shares safe in the stock market. All our shares are safe in demat account.
Trading Account – An investor can only keep his shares safe in a demat account. He cannot trade in the stock market through a demat account. Trading account is required for trading in the stock market. A trading account is an account through which an investor can trade in the stock market.
Bull - When there is a continuous increase in the prices of shares in the stock market over time, then it is called a bull in the stock market.
Bear – When the prices of shares in the stock market continue to fall over time, it is called a bear in the stock market.
Sensex – Sensex is the index of Bombay Stock Exchange. Sensex is determined on the basis of the price of top 30 companies listed in BSE. If the Sensex rises, it means that the companies listed in BSE have performed well and if the Sensex falls, it means that the performance of 30 companies registered in BSE has declined.
Nifty – Nifty is the index of the National Stock Exchange (NSE). Nifty is determined on the basis of the price of top 50 companies listed in NSE. An increase in Nifty means that the companies listed in NSE have performed well and a fall in Nifty means that the performance of companies listed in NSE has declined.
how many stock exchanges are there in india
At one time there used to be 24 stock exchanges in India, but now their number has come down to 9 only. At present, 9 Stock Exchanges in India are listed in SEBI, whose names and locations we have told you through the table below –
Name place of Indian stock market exchange
Bombay Stock Exchange (BSE) - Mumbai
National Stock Exchange of India (NSE) - Mumbai
Calcutta Stock Exchange (CSE) - Kolkata
India International Exchange (India INX) - Gandhinagar
Indian Commodity Exchange Navi - Mumbai
Metropolitan Stock Exchange of India (MSE) - Mumbai
National Commodity & Derivatives Exchange - Mumbai
NSE IFSC - Gandhinagar
Multi Commodity Exchange of India - Mumbai
Advantage of Share Market
- The biggest advantage of investing in the stock market is that in comparison to other investments like bank FDs, savings accounts, etc., you can get more profits within a short period of time.
- When you buy shares of a company, no matter how little your share is, you also own some percentage of the company. You also get the benefits of the company, bonus etc.
- There is no lock-in period in shares as compared to other investments. Investors can buy and sell shares within seconds through stock exchanges.
- The stock market is regulated by SEBI, SEBI protects the interests of the investors and protects the investor from being a victim of any fraud in the stock market.
Disadvantage of Share Market
- Investing in the stock market is considered risky as the market is volatile and stocks can fluctuate.
- When a company is liquidated, the shareholders are paid last. While the bondholders and creditors of the company get paid first.
- Many investors lose their wealth in the stock market.
Common questions related to Stock Market
What is the meaning of stock market?
Share market is a market where shares of companies are bought and sold.
What is the minimum amount that can be invested in the share market?
There is no fixed limit for this, it depends on the share of the company. You can also buy shares for just Rs.10.
How many stock exchanges are there in India?
At present, there are only 9 Stock Exchanges in the stock market of India.
Why do stock markets fluctuate?
Listed companies in the stock market keep doing business everyday, so there are some changes in their conditions every day. When the demand for the company's products increases or decreases, the share price keeps on fluctuating. If a company does not follow the rules of SEBI, then SEBI removes that company from the stock market.
Can you earn money from share market?
Yes absolutely money can be earned from share market. Warren Buffet, one of the richest people in the world, has also become rich by investing in the stock market. In India, Rakesh Jhunjhunwala has also become rich from the stock market.
Who can invest in share market?
Anyone who has a demat and trading account can invest in the stock market.
#share #sharemarketnews #sharemarkettips
Comments
Post a Comment