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What is Stock Market and How to Make Money From It?

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Do you know what the stock market is? You must have seen people talking about it often. And often you have seen many posts related to it on the internet, but do you know that most of the posts do not give you the correct information about this thing. Still, instead of half the incomplete information there, it puts you in further confusion.

Many people want to invest in the Share Market, but due to their lack of proper knowledge about the Stock Market, they avoid investing in the Share Market. They do not invest money in the stock or lose it by investing their money in the Share Market. The stock market or stock market has many names, and different people know it by other names. ” Share “is an English language word. The simplest and easiest meaning is “chunk”. And what the stock market is, it works on the principle of ” share “, ” share “.

BSE (Bombay Stock Exchange) is considered to be the largest stock exchange in India. It was established in 1875 as India’s first stock exchange. The second stock exchange of India is the NSE  (National Stock Exchange of India). It was established in 1992 as India’s first demutualised electronic stock exchange.

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So let’s know what this stock market is? And how does it work? So our post today will try to give all the information related to the share market so that you can avoid taking more losses and get good news about the stock market. Then, without delay, let’s start and get complete information about the Stock Market.

What is Stock Market – What is Stock Market

As we know that people know the stock market or the stock market by different names, and I have already told that the meaning of the share directly means “share” can be called share in a company in the stock market.
For example, suppose a company has issued one lakh shares. Now, if a person buys all the shares in that company, he becomes the company’s owner. For example, if a person buys 40,000 shares out of 1 lakh in the company, his share will be 40%. And he will own that 40% share.

Stocks show the individual’s stake in any company. And whenever that person wants, he can sell his shares to others or buy another person’s shares.

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The value of shares or stocks of companies is recorded in the BSE. The value of the stocks of all the companies keeps decreasing or increasing according to the profitability of the company. Maintaining control of the entire market is done by the Securities and Exchange Board of India (SEBI). Only when SEBI permits a company can a company issue its initial public offering; no company can give an IPO without SEBI’s permission.

When does the company appear in the stock market?

To be listed or visible in the stock market, the company has to make several agreements in writing from the Exchange; under that agreement, the company has to give information about its activities to the market from time to time; such information in this information. This affects the interests of investors.

The valuation of the company is done based on the information given by the company. Based on this assessment, the price of the shares of that company fluctuates when the demand decreases. If any company does not comply with the rules of the listing agreement and is found guilty of violating the rules, then action will be taken by SEBI to remove it from the exchange.

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Apart from this, the company has to go through many things to appear in the stock market. Such as the complete record of the company for the last three years, the company’s share in the market above 25 crores, the capital of the applicant company for IPO is at least ₹ 10Cr. And ₹ 3 CR for FPO. Apart from all these things, many things are taken care of when the company is listed. For a listing of a company, it has to follow strict rules.

What are the types of shares?

There can be many types of shares, and different people define them differently. But we can divide the share mainly into three forms. Let us know the types of share: –

1.) Ordinary Shares – Anyone can buy them. And can sell if needed. These are the most common methods of stock.

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2.) Bonus Shares – When a company makes a good profit, it wants to share it with its shareholders. Instead, she does not want to give money, and if she offers shares, it is called a bonus share.

3.) Preferred Shares – The company brings this share only to certain people. When a company needs money and wants to raise some money from the market, its shares will give the first right to buy them to certain people, like employees working in a company. Such shares are considered very safe.

How to buy stocks

To buy stocks, first, you have to decide whether you would like to buy stocks yourself or take the help of a broker. Only then can you move forward.

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If you take the help of a broker, you must first open your account, which is called a Demat account, which you can get opened through your broker. There is a lot of benefit in buying a stall through a broker; you will get good guidance, and second, you will get complete information about the stock market. Brokers take the money or share of profits in the stock to help you with the stock etc.

There are only two stock exchanges in India. NSE and another BSE. Only companies which are listed in them can be bought or sold in those stocks.

Whenever you buy a share, its money comes in your Demat account only; your Demat account is linked to your bank account. You can easily send money from your Demat account to your bank account.

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If you want to invest your money in Share Market, you can create your account on Discount Broker “ Zerodha ”. In this, you can open a Demat Account very quickly and efficiently and can also buy Share in it. The link below is given.

Zerodha Account

What is Trading in Stock Market?

The term ” Trading ” is trendy and very widely used in the stock market. This word means “business”. Whenever we buy an item or a service to keep that item and service for some time, we will profit by selling it. It can be called ” Trading “.

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Similarly, when a person buys a stock in the stock market, the main objective of that person is that after the price of that stock goes up, they can earn a profit by selling that stock. To make this profit, the whole process of buying and selling stocks is called “Trading”.

What are the types of trading?

As such, there can be many types of trading. But mainly three types of trading are very much liked and used by people.

1) Intra-day Trading: Trades that are completed within a day are called intraday trading. In intra-day trading, the act of buying and selling stocks on the same day is done.

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2) Scalper Trading: Such trades which are sold within a few minutes of buying are called scalper trading. In this, shares are often bought and sold within 5 to 10 minutes. The profit in such a stock is high. But the gain can be increased only if the amount invested in it is more. There are more chances of loss as well because the amount charged is also high.

3) Swing Trading: Trading is completed in a few days, weeks or months. After purchasing the stock, investors keep it for some time, like a week or month. After that, we wait until the stock price rises and when the right price is found. So let’s sell it.

People consider the Stock Market to be a dangerous sport. In which the man only drowns, but it is not like that at all. This notion is entirely wrong. If invested in the stock market with proper methods and restraint, the person can also make a lot of profit. But before jumping into it, the person needs to take as much information as possible about it. Incomplete information has always been dangerous.

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But this does not mean that one should not invest in the stock market or a different talent or ability to support. Anyone can become a master in investing in the stock market with their experience by investing in the stock market.

What did you teach today?

I request all of you readers to share this information about the stock market (Stock Market) in your neighbourhood, relatives, and friends so that our awareness will be there and benefit everyone. I need your support so that I can convey more new information to you.

We hope you liked our post What is Stock Market. If you have any question related to this, then please do comment and ask.

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Ashish Kumar Mishrahttps://www.spotnews18.com/
Ashish Kumar Mishra is the Founder and CEO at Spot News 18. He created Spot News 18 on 30 June 2019. His intention to make these News Websites was only to provide correct and official news to his readers. Now, he is working on Spot News 18 to expand his website reach to all parts of the world.

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