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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