What is share market ?

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Friends, you must have heard the name stock market in many places, then at some point a question must have come in your mind that what is the share market after all.

You will find many websites available on the internet to know about the stock market. But there will probably be few websites which give correct and complete information. But you don’t need to worry. We bring you 100% accurate information.

Friends, if you want to invest in the stock market or are investing in the stock market, but due to incomplete information, you are always confused. There are many people who are ready to invest but they back down due to lack of knowledge. Let us tell you that the stock market is known by many names such as Share Market, Equity Market etc.

What is Share? –

Friends, Share is an English word and it is a small part of Share Capital, that is, share capital should be divided into small parts and each part is called share.

What is Market?

Share Market means a place where buyers and sellers meet and buy or sell.

What is Stock Market –

If in simple words, share market is a platform to buy and sell shares in any company.

There are 2 largest stock exchanges in India:-

Bombay Stock Exchange (BSE) is said to be India’s largest security exchange and it was established in 1875. BSE is the first established stock exchange in India. But BSE is a regional stock exchange.

National Stock Exchange –

National Stock Exchange was established in 1992, but given the status of stock exchange to NSE in April 1993, it is a modern and technology base stock exchange of India.
You can buy and sell the shares of a company listed on BSE/NSE. But this work is done through a broker.

What is Share Buying:-

For example, a company listed on BSE has issued its total 5 lakh shares in the market and you buy 10000 shares of that company. This means that you have got ownership of 10000 shares of that company.

You can also sell some or all of the shares purchased at any time and at any time (working days) whenever you feel like it. You will have to take help from a broker in buying and selling these shares. Brokers charge a commission for their service.

For your information, let us tell you that in BSE / NSE, the origin of any company’s shares or stock is recorded, the price of the company’s share depends on its ability to increase or decrease.

Controlling the market is the job of the Security Exchange Board of India, without the permission of SEBI, no company can issue its IPO (Initial Public Offer). First of all, that company will have to take permission from SEBI, only then it can issue IPO.

How does a company get listed in the stock market?

First of all, for the company to be listed, many agreements will have to be made in writing with the stock market. After this, the company has to submit its necessary documents to the Security Exchange Board of India, after which SEBI evaluates all the information given by the company, if correct, the company gets listed on the stock exchange. .

How does unlisted company trade –

Over The Counter Exchange of India (OTCEI):-

Friends, small and medium company trade in OTCEI which is not listed in stock exchange. OTCEI is a national stock exchange.

Loss in the share market and how the stock market fluctuates

After knowing all this, a question must have come in your mind that whether there is no loss in the stock market and if there is a loss, then why the fluctuations in the share price, let us give you the answer as well.

Let us tell you that if you buy shares of a good company in the stock market, then there is a high chance that the share price will increase in the market.

But whenever you buy the shares of the wrong company, then the chances of losing your money are high. That is why whenever you buy shares of any company, then definitely get good information about that company.

How to invest in Share Market –

1) First of all you have to select the broker to buy the shares and it is necessary to appoint the broker because SEBI has made it necessary.

SEBI has said that to trade on the stock exchange, you can trade only through those who are already registered with the member stock exchange.

2) In the second step, you will have to open a Demat account through a broker and link it with your bank.

3) Transfer funds from bank account to Demat account and buy shares with the help of broker.

If you want, you can also buy by logging into the broker’s website yourself, but my advice is that you buy shares first with the help of the broker.

When you follow the above steps correctly, then the purchased shares will come in your Demat account, whenever you want, you can sell your shares with the help of broker during the working day.


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