You must have listened Investors lost 1 Lakh Crore Rs in Share Market Today, but next day they make more than that. There are many people around you, who invest in shares and make handsome earnings. Seeing all this, you must have thought that, why not to invest in shares ? But the main problem is you don’t know the ABCD of Stock Market. In such case, please don’t worry, we will teach you the ABCD and make you the most bright student of the class. Here we will discuss basics about Share Market and What Is Share Market ? So let’s start.
What Is Share
In Share Market, Share can be define as a part of ownership of any company who wish to raise funds through share market. For Ex. If XYZ company is listed in Stock Market. If they are selling N number of shares of their company and you bought some of them. Then you buy shares means a part of ownership of their company.
Share prices are not fixed and volatile in nature. When any company firstly sell their share, then it depends on them, what they wish to keep the price. But once Stock holders hold the Stocks, then the Stock price depends on the market up and downs as well as companies goodwill and performance.
You have freedom to sell or buy any shares at any time, unless you should get a seller or buyer.
What Is Share Market
The place where shares are sell or buy is Stock Market. In India, Bombay Stock Market is the place where you can buy or sell shares. Stock Market is extremely volatile in nature. Though Stock Market is one of the most highest return giving investment options but also highly risky. Because of the risky nature of Share Market most of the Investors stay away from this Investment option.
There are two types of Stock Market, we will discuss in detail.
- Primary Share Market : If any company wish to raise funds via Stock Market, then first they need to list their Stocks in market and complete various formalities. This is termed as IPO means Initial Public Offering. In IPO company can fix price of their Stocks as well as the number of Stocks means ownership they wish to sell. This process happens in Primary Share Market.
- Secondary Share Market : When you sell or buy the already listed shares from or to any other investor, then this process happens in Secondary Stock Market. In Secondary Stock Market prices of the Stocks are not fixed. They are volatile as per the market condition. Most of Transactions happens in Stock Market are via Secondary Share Market.
These is the basics regarding Stocks and Stock Market. We tried to explain the basics regarding stock market in simplest way possible. Stock Market is undoubtedly the best way for Investment, which can give you highest return. But before investing in Stock Market you should understand the risk factor and invest wisely. We hope you have liked the article. For all of you, we will have series of articles regarding Stock Market in upcoming days. If you have any complaint or suggestion regarding this article, then please comment below.