Today we will tell you through this article what is Share Market and in the Share Market, how to Invest. In today’s time people earn money but are not able to invest it in the right place, you will read this article till the end, you will get all the information related to the stock market.
Friends, most of us must have heard that invest in the share market and get double profits and let us tell you that as fast as money comes here.
As fast as anything can happen in the stock market, if you want to invest in the stock market then first of all you have to get complete information about it.
Table of Contents
What is Share Market?
In the stock market, Mutual Funds, Debentures, apart from this many other securities are bought and sold, they can be bought and sold only through the Stock Exchange.
There are Two Main Stock Exchanges Here:-
- BSE : Bombay Stock Exchange
- NSE : National Stock Exchange
How does the share market work?
If the company makes a profit then we will also profit and if the company loses then we will also suffer.
Any company enters the stock market so that it can make a good profit when it needs money for the growth of the company.
So the company brings and sells shares in the stock market, it gets money which it uses well.
It is very important for you to understand this before investing in the share market, first of all, whatever company is there, it lists its shares on the stock exchange and brings IPO (Initial Public Offering) and those are shares.
After the IPO process is completed, the shares come into the market and they are bought and sold by brokers and stock exchanges through investors.
What is Trading Account?
You can either open it with a broker, he can manage your account, being online, you can see it anytime and you can buy and sell shares.
What is a Demat Account?
A Demat account is an account in which we can keep our money, just like we keep money safe in our banks.
Demat Account is used to invest money in Share Market, all the money deposited in our Saving Account has to be invested in it, from here you can invest money in Share Market and whatever profit will come in our account.
There is also a benefit of a Demat Account, all the securities (Mutual Fund, Government Securities, Shares) related to the money we invest in it can be kept together in Electronic Form.
How to open Demat Account?
Important Documents for Demat Account and Trading Account :-
- 2 passport size photographs
- cancel check
- Address proof
- Pan Card
- income proof
You have to give a photocopy of all these documents as well as ask for the originals for verification and after this process, once you see all the documents,
And read them thoroughly, after verification your trading account has been created and now you can share market me trading.
How does the price change in the share market?
Friends, you must have started understanding the Ganit of Share Market, just a while back we told you about IPO (Initial Public Offering), when the IPO is completed.
So the price of shares keeps changing according to its demand and supply in the market. If the number of buyers of shares is more than the sellers
So the price of shares will increase and if the number of sellers is more than those who buy, then its price will decrease.
What is Sensex and Nifty?
Sensex: Talking about the word Sensex, it is made up of Sensitive and Index words, it is the point of the Bombay Stock Exchange, it is determined by the companies which are registered in BSE.
It is done on the basis of the total value of the companies in their market, its price changes daily, it is one of the oldest stock markets in India.
We can say in simple language that if the Sensex rises then the company registered in BSE is performing well and if it falls then the performance is doing poorly.
what we learned today?
Friends, in today’s article, we gave you information about What Is Share Market, as well as how to invest in share market, how does share market work. I hope that after reading this article, you must have got all the information related to the share market, if you liked this article, then definitely share it with your relatives, friends, classmates so that they also get information about the share market.