What is Stock or share Market A Beginners Guide in 2020.

What is Stock Market, what is share market, how does stock market works. What is demat account, how do invest in share market.
What is Stock or share market.

Everyone has heard the name of the stock market. And everybody understands that investment in stock market means the best way to become rich quickly, but this is half truth and says that incomplete knowledge is always dangerous.

It is true that you can become rich quickly by investing in the stock market. But it is also absolutely true that the stock market is enough to make you very poor in a moment. That's why you read this post in its entirety today.

Because in this post we are going to give you complete information related to the stock market, such as - what is the stock market, how to invest in the stock market, what is the right way to invest in it. All information related to the stock market.

So, if you are thinking of investing in the stock market, then the information shared in today's post will be very useful for you. So do read this article completely. Without wasting any time, Let us first know - what is stock market.

what is Stock Market.

Stock means share. And the market is called the place where sale and purchase is done. Stock market (stock exchange) is a place where you can buy and sell stock of companies.

There are two major stock market in India named BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). Many companies register in BSE and NSE. And from here you can buy and sell shares of these registered companies. 

In the stock market, apart from buying and selling shares, mutual funds, bonds and derivatives are also employed. In the stock market, people invest with the hope and expectation of big returns and domestic and foreign people also invest in them.

Understanding of Stock Market.

As I told you that you can buy and sell shares in the stock market. And now let us understand this selling purchase from the very beginning.

When any company needs investment. Then those companies have only two ways, first, that they can loan from any bank, but in this they also have to pay interest. That is why all companies adopt another method.

And the other way is that they take off their stocks for selling in the stock market.

Whenever a company wants to sell its shares, first of all it has to take approval from SEBI and after that it has to register its company in NSE and BSE which are two stock markets of India.

There are many such intermediary platforms registered under NSE and BSE as well. Shares of companies registered in NSE and BSE are sold to general public.

People who buy those shares are entitled to that percentage of shares. And those shares are deposited in their demat account. And he can withdraw his money from the stock market by selling those shares whenever he wants.

what is Demat Account.

Demat account is also like a bank account. But we do not deposit money in it. This account is opened when you buy shares of a company. And those shares are deposited in this demat account and you have full access to this demat account. when you can sell these shares whenever you want.

How to invest in stock.

Anyone can invest in the stock market. If you want to buy shares, then you have to resort to a third party shares selling platform. You cannot buy shares from direct NSE or BSE, nor do they sell direct shares.

If you want to invest in the stock market, then you have to first find good shares and buy them. Buying shares is not a difficult task but finding them is a very difficult task.

If you do not have time to find good shares, then you can take help of a broker. Because their daily work is in the stock market, that is why their good stock is tested and they are the experts of the stock market. And you can buy stocks from Angela or Zerodha.

How Does Stock Market work.

The companies listed in the stock market are divided into different sectors by category. Let us know when the values of stocks are down and up.

When a company performs well and earns good profits, most people start buying shares of that company and thereby increasing the demand for the shares of that company and the value of its shares also increases.

And if a company goes into loss and makes a profit, then the demand for its stock in the stock market becomes work and at the same time the price of its shares also decreases.

People buy shares of such company from the stock market. Who are performing well and they think In future, the price of its stock may increase. If their prices increase in future then you can earn good return by selling them And if that company is not able to perform well in future, then the price of its share decreases and the Shareholders get into losses.


So I hope you will like the information provided in this post. I you liked this information. Then do share it and comment below how do you like it.

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