Share is a unit that represents part ownership of a company.When you buy share of a company like Reliance,Infosys,Bharti Airtel,HDFC Bank etc. you are becoming a part owner of that company. It might be 0.0000001% ownership but still you become a owner. This is a good thing as well as bad thing. Good thing because tomorrow if the company performs well and the stock prices increases then the prices of your stock will also go up.
Let me explain
let’s assume the share price of reliance is Rs 1000/-.. You buy 10 shares of reliance . So you pay 1000*10=Rs 10,000/- and in return you get 10 shares of reliance.Suppose after few minutes or few seconds or few days because of some profit, reliance make,or some good news in market, or because of demand and supply , the share price of reliance goes up and become Rs 1500 /-per shares so your 10 share price will 10*1500= Rs 15,000 /- which is great because even though the company working, you are getting paid and here your profit is Rs 5,000 /- ( share price changes in every second) and the bad thing is when the price will go down you are making lose.. So when you are become the owner of that company not only you share the good well ,but you also share the risk with that company.
So you should learn to identify the good company
and The most important The intraday game where you can make money everyday from the share market.
NSE- National Stock Exchange
BSE – Bombay Stock Exchange
Stock market is like your household store.. People who want to buy shares of company go to stock market.
in India NSE which has around 1,600 companies and in BSE has around 5000 companies listed on stock market but remember you can’t go to physically stock market .You can access it electronically through your laptop,mobile,computer. with the help of registered stock broker.
SEBI- Securites and Exchange board of India
Whenever there is money there is thieves . So the job of sebi is to make sure that people like you and me are not cheated. in the market. They are BIG BOSS of the market. They have rules,regulations, legal framework setup. So that if anybody don’t follow the rules or envolve in some malpractice sebi kick them out.
DEMAT &TRADING ACCOUNT
To do transaction in stock market you need two types of account. Trading &Demat account.
It is used to place buy and sell order in the stock market. Whenever you buy some stock, the amount is debited from your trading account similarly when you selling share the sell amount will transfered back to your trading account.