What is Share Market?



Hello friends, welcome to all of you on this blog, where I am going to tell you all about Share Market in very easy words and everything in detail that what is share market? How to invest money in share market? What is BSE and NSE? What are Indexes? What is the best time to invest in the market? We will learn many more on this blog of today!

What is Share Market?

Share means share, and market means a place where we can buy and sell, then a place where we can buy and sell a share of a company, it is called share market . It is also known as Stock Market.

What is BSE and NSE called?

The trading of the stock market is done on the basis of stock exchanges.

BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) are the two major stock exchanges in India, with Bombay Stock Exchange being one of the oldest stock exchanges in the world.

Both of these stock exchanges work on computer networks. We all can easily buy our shares through these stock exchanges.

What are Share Market Indexes?

Indexes are made up of stocks of strong companies from different sectors.

The main index of BSE is Sensex(Sensex) and the main index of NSE is Nifty(Nifty). The movement and trend of the market can be easily assessed by looking at these indices. And their indexes are also determined on the basis of companies of different capital, such as large cap, mid cap, and small cap index.

Individual sector indices are also created to represent the share of their industries, such as the agriculture index, banking index or pharma index.

How to buy shares in share market?

To invest or buy shares in the share market, you have to open a Demat account with a broker of your choice. You can open three-in-one account in your bank now which will include Savings account, Demat account and Trading account. You may also have to pay some annual maintenance charges to these brokers, so that the shares you buy can be very safe. Some brokers may also charge you brokerage fees for buying and selling shares.

What is Portfolio? And how to diversify it?

The list of shares purchased by us is called portfolio, when we buy a share in our demat account, then it gets included in our portfolio.

The performance of the previous years of different companies is different, some are bad and some are good. Diversifying the portfolio, this means that while creating your portfolio, it should be kept in mind that the investment risk is minimal.

What is Bulls and Bears?

Usually, when the market rises, we call it a bullish market and when the market is bearish, we call it a bearish market. It is a very normal thing that even in a bullish market a poor stock performs well and in a bearish market the price of a good share falls.

How to choose Best Shares?

To include strong stocks in your portfolio, you need to do a thorough research. You should never choose a stock on the basis of the suggestion given by someone else.

If you are going to invest your money in share market for the first time then you must do it with FMCG(Fast Moving Consumer Goods) and Blue Chip companies and you must also turn towards Large Cap Companies, so that your The risk should be minimized.

What are multibagger stocks?

You all must have heard that how an investor has become a billionaire overnight by investing money in a stock. The secret of becoming a billionaire by Stokes is only one thing, that is to find such stocks which are multibagger, that is to say, such stocks which can return double, triple or even more in few months or few years. We can give it, we call it Multibagger Stocks.

What is the best time to invest in the stock market?

See, first you try to understand that there is no such exact time, in which one can become rich by investing money in the stock market. We should invest in the shares of a company only when we have full faith in that company, that it will definitely give profits in the future.

For this, you should first have complete knowledge of the stock market, and you should also have information about the company you have selected.

What is the formula for Age and 100 in the stock market?

Younger investor can invest in the market by taking more risk due to not being burdened with more responsibilities because younger investor has a lot of time. As the responsibilities of an investor in his 40s and above become more, one should invest by being defensive rather than being too aggressive.

For investing, the formula for age and 100 also proves to be very helpful. According to this formula, subtract your present age from 100, and invest the remaining number in the stock market according to your current amount. For example, if you are 45 at present, then invest 100-45 = 55% of your deposited amount in the stock market.

What is the return on shares?

The investor, by becoming a shareholder of a good company for a long time, takes advantage of the increased share prices of the company by selling it. Every investor buys shares with the hope that he can get a good amount of shares in the coming time. Big companies also provide Dividend, Bonus to their shareholders to express their gratitude.

We all can invest in share market easily by doing thorough research and getting complete information, and it is very necessary to invest in this modern world so that we can also become the partner of increasing earnings and profits of good companies and quickly we To increase the GDP of your country.

Friends, I hope you have liked this article very much and you must have got a lot of information from it. If you liked this information, then do share it.

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