everything about Stock market

What is stock market

As you read earlier ‘why one must should invest in stock market‘.

What is Share/stock

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

reduce risk

and  The most important The intraday game where you can make money everyday from the share market.

NSE/BSE

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

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.

Trading 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.

DEMAT ACCOUNT

So after buying share where they are kept? For that you need a demat account. I t is act as a digital wallet where your shares are stored.

STOCK BROKER

I f you want to earn money from stock market , you need to do it through a stock broker, They are your stock market best friend. T hey help you setup your demat and trading account

They will provide a trading terminal with the website or with the app

gives you tips about share market

 and gives you advice about which share to buy and sell.  

and for doing all of these  they charge you some money called, brokerage.

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