Many people want to invest in the Share Market, because they do not have the right information about the stock market, either they avoid investing in the Share Market and do not invest money in the stock or they lose their money in the Share Market.The stock market or the share market has many names, and it is known by different names by different people. “Share” which is the Stock Market language word and the stock market is works on the principle of “share”.
BSE (Bombay Stock Exchange) is considered India’s largest stock exchange. It was established in 1875 as the first stock exchange of India. India’s second stock exchange is the National Stock Exchange of India.It was established in 1992 as India’s first demutualized electronic stock exchange.
So let’s know what is this Stock Market? And how it works. So today our post will try to give all information related to the stock market so that you avoid avoiding more losses and also get good information about the stock market. Then, without delay, let’s start and get complete information about Stock Market.
What is Stock Market
As we know, people know the share market or the stock market by different names and I have already told that the stock has a direct meaning that is “share” in stock market the share of company can be called a stock.
For example, let’s say a company has issued one million shares. Now if a person purchases shares in that company, then he owns as many shares in that company. Like if a person purchases 55,000 shares of 1 lakh in the company, then its share will be 55% in that company. And he will be the owner of that 55% share.
Stocks show the person’s share in any company. And that person can sell his shares to others or buy another person’s stock whenever he wants.
The value of shares or stock of companies is recorded in BSE. The value of stocks of all the companies is reduced or more as per the company’s profitable ability. The control of the entire market is done by the Securities and Exchange Board of India (SEBI). Only when SEBI allows a company then it can issue its Initial public offering, without the permission of SEBI, no company can issue an IPO.
How Many Types of Stock/Share are There?
Stocks can be of different types and different people define them differently. But we can know share
mainly in 3 forms So Let’s know the types of share:-
1- BONUS SHARES:- When a company makes good profits and the company wants to give some part to its shareholders. Instead they do not want to pay the money and they only gives share to its shareholder then it is called bonus shares.
2- PREFERRED SHARES:- This stock is brought by the company to some specific people only. When a company needs money and wants to raise some money from the market then it will issue the shares and He will give the first right of buying shares to certain peoples.
3- COMMON SHARES:- Anyone can buy them and sell it if needed So this is the most common way stock.
When Company Look at The Stock Market?
In order to be listed or displayed in the stock market, the company has to compromise in writing with Exchange, in accordance with that agreement, the company has to give its information to the market from time to time, such information in these information also That is why it has to do with the interests of the investors.
Based on the information given by the company is evaluated and on the basis of this assessment, the prices of the shares of that company continue to fluctuate after the demand decreases. If any company does not comply with the listing agreement agreement and is found guilty of violation of rules, then it will be done by SEBI to act on removing it from the exchange.
Apart from this, the company has to go through a lot of things to appear in the stock market. As the complete record of the company for the last 3 years, the company’s market share is above 25 crore, the applicant company’s capital for the IPO is less than 10Cr. And 3 CR for FPO Should be there. Apart from all these things, many things are taken into consideration when the company is listed. To be a company listing, he has to follow strict rules.
How To Buy Stocks
To buy stocks, first you have to decide whether you would like to buy stocks yourself or get help from a broker. Only then can you move forward.
If you take the help of the broker, you will first have to open your account. This is called a demat account. Which you can open through your broker. Buying a stall through a broker makes great profit, one will get good guidance and secondly you will get the full information about the stock market. Brokers help you and share information etc. They take part in the money or profits in the stock.
There are 2 stock exchanges in India. NSE and the other BSE. Only those companies listed in them can be bought or sold in the same stock.
Whenever you buy a stock, its money comes only in your demat account. Your demat account is linked to your bank account. You can easily send money from your demat account to your bank account.
WHAT IS TRADING IN STOCK MARKETING
The word trading is very popular and very much used in the stock market. This word is also used as business that is whenever we buy any item or service with this objective that after selling it for some time and after selling it we will make profit from it then this work Can be called trading.
Similarly, when a person buys a stock in the stock market the main purpose of that person is that after the stock prices rise they can earn profit by selling that stock. The entire process of buying and selling stocks is called trading to earn this profit.
How Many Type of TRADING are Available.
There are several types of trading that can be. But mainly 3 types of trading are preferred by people and used.
1- SCALPER TRADING:- Trade that is sold within few minutes of buying is called scalper trading. It is often sold and sold in 5 to 10 minutes. There is more profits in this kind of share. But the profits in it can be higher only if the amount invested is high. There are more opportunities for losses as the amount applied is also high.
2- SWING TRADING:- The process of trading in it is completed in a few days, weeks or months. After buying the stock the investor keeps it for some time such as a week or a month. After that the stock prices wait after the increase and when the correct feeling is found. then they can sell it.
3-INTRA-DAY TRADING:- Such trades which are completed within one day are called intra day trading. In the intra-day trading the stock is buy on the same day and sold on the same day.
Stock Market is considered by people as a dangerous sport. In which the man just drowns, but it is not so at all. This perception is completely wrong. If invested in the stock market with correct method and restraint, then the person can also make substantial profits in this thing. But before jumping into it then it is very important for the person to get as much information as possible.
Incomplete information has always been dangerous. But this does not mean that there should be no different kind of talent or ability to invest in the stock market or to invest. By trying out any of the stock market information and investing in it, you can become an expert in the field of investment in the stock market.
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