Most common words in terms of investment in making more money. If you are interested in the investment you have ever listened about this term and thought that what is share market.
Well, start with simple definitions share market is kind of a place where buy or sell shares.
Now, what is a share? A share is ownership of the company from where you bought that share.
This means if you buy a share of any company you will become a member of that particular company. As simple as now if you buy 1 share of any company means you have control of that 1 share of the company.
Now you can sell them to anybody who needs that or maybe you want to sell that share for profit. So these all activities like selling or buying shares happen in the share market.
Lots of people sell and buy shares day-to-day. Because of their immense knowledge and experience in the share market.
So if you are a beginner then you can choose a stock wisely and stick with that for a long period of time.
Normally, you have heard various times that investing in the stock can provide more interest than any investment. But there is a condition that you need to have patience. Without this, you can not succeed in the share market.
Security of your investment:
generally, the company starts its IPO (Initial Public Offering) to raise funds from the public. And then you can become part of these companies by investing them through buying their shares.
Now before the start, its IPO company needs to complete all criteria which are set by SEBI (Securities and Exchange Board of India). These rules are made for especially public protection. Due to this rule, a company can not fraud with its shareholders.
So it means your money is full of security if you invest in the share market.
Basic requirements before investing in the share market:
First of all, you need to have good knowledge of the stock you choose. You can take the help of a financial advisor before choosing any stock.
Second, you need a D-mate account. It is like proof or a receipt of your buying stock that the company used to provide you. Sometime before it was in the hard copy form but now it converts into electronic form.
When you start your investment then stockbroker will responsible for providing you a D-mate account.
Third, you need a trading account where you can buy and sell shares. Only you have to give some commission to the stockbroker.
And last a bank account that will responsible for any transactions.
What is BSE/NSE?
BSE stands for Bombay Stock exchange and NSE stands for National Stock Exchange. These are responsible for the security of stocks and bonds.
There are 1000+ companies are listed in NSE and 5000+ companies are listed in the BSE. both stock exchanges are situated in Mumbai. Where lots of investors and brokers trade on these stock exchanges.
As I mentioned before the share market is completely free from the risk. Because the governing authority of all share markets is SEBI which is the institute of government.
But the main factor before investing in the share market is without proper guidance and knowledge, the chances of your loss is much higher.
And it is the universal suggestion that before investing in the share market you have to do a complete analysis of your choosing stoke.