It's more important to earn and save money on today's world than where you invest it. Because if you don't know where your money is going, it can be the biggest mistake for you. Talking about investment is considered to be the biggest way to invest in the world, Share Market, or Stock Market.
What is Share Market?
Stock Market or Share Market is where Shares, Debentures, Mutual Funds, Derivatives, and other types of Securities (securities) are purchased and sold. Shares are purchased and sold through the Stock Exchange, and BSE (Bombay Stock Exchange) and NSE (National Exchange) are the two main Stock Exchange in India.
What are shares?
Share means "part" and "share" in the language of the stock market means "part in companies." When you buy shares of a company, you become a partner of the company. For example, if a company has issued a total of 1 lakh shares and you have purchased 10,000 shares out of that, you become 10% partner of that company. You can sell these shares in the stock market whenever you want.
How does Share market work?
See, it depends on many of the states, such as:
- Listed Companies
- shareholder
- Demand and Supply
- Market conditions etc.
Understand it in a simple way one by one:
How do companies issue shares?
First, companies bring IPO (Initial Public Offering) by listing their shares on the stock exchange and issue public at the price their shares have set themselves. Once the IPO is completed, the shares market is bought and sold by investors through stock exchanges and brokers.
How do shares change prices?
The company decides the price of shares while bringing the IPO, but once the IPO is completed, Shares' value varies depending on the market's Demand and Supply. This change takes place based on the important information furnished by the demand and supply companies from time to time.
You can understand it like this:
Shares price will rise if the number of buyers is higher than those who sell. And if it is counterproductive, the number of sellers is more than the buyers, the price will be lower.
What is Sensex?
Sensex is the index of the Bombay Stock Exchange, and Sensex is determined on the basis of market capitalization (total value of companies) of Top 30 Companies listed on BSE. If the Sensex rises, it means that most of the companies registered with BSE have performed well. And similarly, if the Sensex falls, it means that most of the companies' performance has been poor.
What is Nifty?
Nifty is the Index of the National Stock Exchange and is determined on the market capitalization basis of the top 50 companies listed in NSE. If Nifty grows, it means that companies registered with NSE have performed well, and if Nifty decreases, it means that NSE companies have performed badly.
How to invest in the share market?
With all these rules in mind, your next step may be to start the stock market's investment process when you decide to invest in the Stock Market. For this, you first have to open a Trading and Demat Account with a Stock Broker.
What is a Demat Account?
Just as you can deposit money in a bank account, all securities related to your investment in Demat Account like Share, Bonds, Government Securities, Mutual Funds, etc., are used in the electronic Form Store.
What is a Trading Account?
Trading Account is used to share sell and purchase your share business. You can open this account with a good Broker, and you can buy and sell shares at any time with the help of this account because of the online facility.
Read also: How to claim Insurance for a stolen car: Follow these easy steps
Now complete your bank work from your WhatsApp: Know here what are the charges
What are the benefits of a Standard COVID-19 Health Insurance Policy?
Image credit: financialexpress