What is stock market and how does it work? What are shares? How do prices of shares change? What is Sensex? What are nifty? ~ Pramod Bidiyasir

👉 What is the stock market and how does it work?

In today's debt, it is more important to find and save money than to invest it, because if you do not know where your money is going, then it can be a big mistake for you.

Speaking of investing, the Share Market or the Stock Market is considered to be the largest investment destination in the world.

👉What is the stock market?

A Stock Market or Share Market is where Shares, Debentures, Mutual Funds, Derivatives and other forms of Securities are bought and sold.

The shares are traded on the Stock Exchange and the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange) are the two leading countries in India.

👉What are stocks?

Shared means "share" and in the language of stocks, "share" means "share to companies". When you buy company shares, you become the shareholder of the company.

For example, if a company issues 1 lakh shares and buys 10 thousand shares in that, you become the owner of 10% of that company. You can sell these stocks in the stock market anytime you want.

👉How does the stock market work?

Look depends on a number of factors, such as -

Listed companies

Share host

Demand and supply

Market conditions etc.

👉How do companies issue shares?

First, companies receive an IPO (Initial Public Offering) by listing their shares in stock and giving the public their shares at a fixed price.

Once the IPO is finalized, Shares enter the market and are bought and sold by investors in exchange for shares with brokers.

👉How does the stock price change?

The company determines the stock price at the time of submission of the IPO, but once the IPO is completed, the price of the shares varies according to need and market acquisition.

These requirements and service providers change from time to time depending on important information.

You can understand it this way -

If the number of people buying shares exceeds the number of people selling, the share price will increase -

Buyers ^ Vendors

And if the opposite is true, the number of people selling is higher than the number of buyers, the price will be lower -

Vendors ^ Buyers

👉What is Sensex?

Sensex is a Bombay Stock Exchange index and Sensex is determined by the market capitalization (total number of companies) of the top 30 companies listed on the BSE.

If Sensex goes up, it means that most companies listed on BSE have done well.

And similarly if Sensex falls, it means that the performance of many companies is declining.

👉What are nifty?

Nifty is an index of the National Stock Exchange and is determined on the basis of the financial markets of the top 50 companies listed on the NSE.

If Nifty goes up it means that companies registered on the NSE have done well and if Nifty decreases it means that NSE companies have done badly.

Other types of security

Most people think that only stocks are sold in the stock market but this is not the case.

Like stocks, there are many other securities sold in the stock market.

👉Respond | What are Debentures?

Bond / Debenture is like a loan in some way.

When a company needs project funding, it is possible to take out a bank loan or take a loan from an investor and offer bonds / debentures to the public.

Whose payment should they make in the allotted time.

Companies pay interest at the prescribed rate on Bond / Debentures and after the end of the bond period they repay their interest.

Bonds / Debentures are a safer way to invest in any investor compared to Shares.

Because in it interest is paid periodically at the rate set by the company and payment is made at maturity (termination of the bond period).

👉What Are Partnerships?

Mutual Investments Indirect Investments in One Shares and Bonds.

Mutual funds are a type of institution or trust that issues its shares (shares), which are purchased by individuals and invested in joint funds.

Investments are invested in various stocks and securities by professional financial managers shared based on their knowledge, experience, understanding and analysis.

The Advantage of Investing in Mutual Funds is that the Technology Fund Manager tries to invest all the money collected in the best way possible on the basis of their knowledge, rather than charging a certain amount.

👉What is a SIP?

SIP stands for - Structured Investment Plan. SIPs are the only way to jointly invest.

In this case, instead of a lump sum investment, a certain amount is invested in the Mutual Fund on a monthly basis.

The investor's bank account is linked to the SIP Scheme, so that a certain amount is transferred from the bank account to a shared fund on a monthly basis and units of the same amount go into the investor's account.

👉What is the origin of the other?

Deletion means a decision made in the future today.

Future Options Options on the Stock Market.

Under future trading, you can make future transactions today at a fixed price.

The actual delivery is not provided for this and payment is made on the basis of price variation.

👉How to Invest in a Share Market?

Keeping all these rules in mind, when you decide to invest in the stock market, your next step would be to start the investment process in the stock market.

For this, you must first open a Demat Trading Account with Stock Broker.

👉What is a Demat Account?

Just as banks can deposit money into an account, so all securities related to your investment in a Demat Account such as Share, Bonds, Security Securities, Mutual Funds etc are kept in electronic form.

👉What is a Trading Account?

Trading Account is used to create Share Sell and Purchase in your sharing business.

You can open this account with a good trader and thanks to an online facility, you can buy and sell shares at any time with the help of this account.

About

Hi , This is Pramod Choudhary from Nagaur Rajasthan India. I an student and I would like to share my positive thinking with everyone that's my passion . Thank you