What is Stock Market? Understand the stock market
We are going to tell you about the stock market here, you must have felt that how can one invest in the stock market? Perhaps many people in our country believe that one should not invest in the stock market. Here it is considered Gambling, because most people do not earn money here but lose it.
People lose here because these people consider the market to be betting, without any technical knowledge; these people invest their money in the market and later lose all the money.
If we want to invest, we have to understand the market first. Without understanding, we cannot do anything in the share market because of the atmosphere of fear spread everywhere. In the stock market, we have to work keeping our passion aside because there can be an atmosphere of fear even more than a roller coaster.
Most important thing about stock market
Before investing in the share market, we must do paper trade, so that we know how much our success ratio is or whether our strategy is working properly or not. Paper trade means to watch a stock by writing it on paper. Before taking any stock, we have to do a complete analysis of it, for which we have to pay attention to many such things like technical charts, news, business of the company, Earnings of the company.
It is not that everyone makes a loss in the share market. There are people in the world who have earned a lot of money in the share market. Perhaps you must have heard the name of Warren Buffett; he started investing in the stock market from his childhood. This is the investor who has been in the top ten of the world’s richest man for the past several years. If we talk about India, then many successful examples like Rakesh Jhunjhunwala, Radhakrishna Damani, Vijay Kedia, Doli Khanna have earned a lot of money in the share market.
Share means participation i.e. shares and market means where you can buy and sell i.e. stock market is a place to buy and sell stake in any company.
Stock Exchange and Investor
There are two stock exchanges in India. One is the Bombay Stock Exchange and the other is the National Stock Exchange. The share market also has foreign investors called FIIs. Suppose a company has issued a total of 5,00,000 shares. If you buy some shares of that company, then you get that much share i.e. ownership in that company and you can sell your share of shares to any buyer whenever you want.
To buy or sell any share in the stock market, you have to take the help of a broker. Brokers charge their own commission from clients for buying and selling shares. The control of the share market is in the hands of SEBI, which is a government body. Only after the permission of SEBI, a company can be listed in the stock market, that is, it can issue an IPO. If a company does not comply with the conditions of SEBI, then it can be delisted from BSE and NSE.
How to get started in Stock Market?
To start investing in the share market, first you have to open your demat account with a broker. By the way, many brokers are present in India for many years. In which there are also some online brokers. However, some investors do not trust online brokers because they believe that what will happen if they run away? Those people should understand that all the brokers are under the control of SEBI.
Upstox company has been the favorite broker company of all traders in India since 2009. All in One Solution for Investing is available here for the Investor. Its Trading Platform is quite User Friendly and new people also understand it very easily.
FAQs
There are foreign investors in the stock market called FIIs.
To get started, first you need to open your demat account with a broker.
The control of the share market is in the hands of SEBI, which is a government body.