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What is stock market?

 





STOCK MARKET DEFINITION:-

 


                                  Share market is that the place wherever all the money securities are buy or sell by the investors or the traders in the stock market. ... By buying the share, you make associate investment inside the company. as a result of the company grows, the value of your share can also increase. Share market is wherever buying or selling of share happens. Share represents a unit of possession of the company from wherever you bought it. ... By buying share, you're invest money in the company. because the company grows, the value of your share too can increase. you'll get profit by selling the shares within the market. The construct behind however the stock exchange works is pretty easy. operative very similar to associate firm, the stock exchange allows buyers and sellers to barter costs and build trades. ... Investors will then get and sell these stocks among themselves, and also the exchange tracks the provision and demand of every listed stock.


You can invest within the share marketplace for short term or future betting on your desires. supported your risk appetency, age and dependency, you'll be a traders and investors within the share market. As markets are connected with risk, you have got to read carefully. the various investment choices within the Indian share market today are equity, IPO, commodity, currency, etc.




How to invest in share market?

Demat and trading Accounts:

 Firstly, open a demat and trading account online with a broker and link your bank account and other documents. opening  demat account may be a very easy and simple method. Once you have got your demat and trading account, you'll begin investment in the Indian share market. It’s essential for you to be acquainted with the stock exchanges and their functions. stock market is wherever buying and selling of shares take place. The stock exchanges regulated by SEBI (Securities and Exchange Board of India). the two necessary stock exchanges of India are NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).


Types of Stocks to invest in Share Market

When you can buy a  share, you'll be a common shareholder or most well-liked shareholder on the idea of possession.


As a common shareholder, you're permissible to choose shareholder conferences and you're eligible to receive dividends. If the company wherever you have invested goes bankrupt, you may receive the share of take of liquidation only in spite of everything creditors and 

As a preferred shareholder, you will not have pick rights. however you may get dividends before common shareholder receives it.


On the idea of market capitalization, you'll invest in corporation,large cap, mid cap and small cap stocks. market capitalization = share price*number of shares outstanding


Outstanding shares are  the shares which will be bought and sold public markets. i'll justify this with associate example. Say a company  A has one hundred outstanding shares and also the share worth is Rs. 20, then market capitalization of the company are 20*100=Rs. 2000

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