What is Share Market?
Shares can be described as the financial instrument issued by the company & share market is where buying & selling of share happens. Share represents a unit of ownership of the company from where you bought it.
The Share market is a place which provides many opportunities for individuals to grow their wealth & build saving.
There are two kinds of Share Markets
- Primary Market
- Secondary Market
Primary Market
Primary Market that a Company gets registered to issue
shares to the Public & raise Money. Share issues to the public through an
initial public offering (IPO)
There are two stock exchange in India Bombay Stock
exchange (BSE) & National Stock exchange (NSE). Investors can apply for
these newly issued shares through their trading account & their bank
account in stock exchange.
Secondary Market
those shares bought in the primary market can be sold
in the secondary market. investors a chance to sell all its shares and exit the
financial market. secondary market transactions are willing to trade where one investor at the prevailing market. mostly, investors conduct such transactions using an intermediary such as a broker.
Share market tips
- understand share market basics & then you can invest.
- Think practically not an emotionally.
- Invest through reliable intermediaries.
- Set goals before investing.
- understand actual market situations & stay away from rumours.
1. understand share market basics & then you can invest –
Investors are
investing in stock market without understanding basic strategies, trading,
stock prices etc. so, at the end they suffer losses.
2. Think practically not an emotionally -
It is very important for investors to think practically
not an emotionally. emotional trading & investing faces lack of problems
& losses.
3. Invest through reliable intermediaries –
the stock broker is intermediary in stock market. you
have to find out best & reliable stock broker for you. reputed stock broker
will guide you about investing in stock market.
4. Set goals before investing -
set your financial goals according to the market
situations. You have to open demat & trading account.you could attempt
to gain from short-term fluctuations in stock prices.
5. understand actual market situations & stay away
from rumours –
avoid the rumours & study market situations, company performance & actual growth of the company & then invest.
Finally, A stock market is a place where companies sell partial ownership of their firms to general investors.
-Written by: Neelam Shinde
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