Last Updated on January 1, 2022 by admin
Stock Market Investment – Best Guide for Beginners
How To Invest in Stock Market in India. A complete guide to Stock market investment strategies for beginners. What is stock market and how to invest on it ?
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Stock market Investment :
A beginners guide to Stock market investment. Before you invest anything on stock market learn, How to invest in stock market. In this article we will discuss about Stock market & Stock market investment. How you can make money from Stock market. You know we already discuss about, How to Earn Money in Share Market Daily. You can read the post. Stock market investing for beginners: essentials to start investing successfully
Stock market investment For Beginners:
Investment in stock market. How to invest in stock market. Investing in stock market. How to invest in Share market. How you can earn money from stock market. Read the complete post to get full knowledge about Stock market investment.
If you learn about Stock market and stock market invest strategies then you will not loss any money in stock market. You can become a millionaire by investing money on stock market.
Also read : Upstox Referral & Refer And Earn Unlimited Money
What is Stock Market and how to invest invest in stock market?
In today’s competitive world, everyone wants to get rich. People work hard day and night because of this. People also save a portion of their income. But it is not enough just to get rich. If we want to protect our future, we will have to invest somewhere. Such as share market, stock market, mutual fund etc. In this post we will know, what is the stock market and how to invest in stock market?
Stock market investment – The more you invest in the stock market, the more you can earn. But at the same time, if you invest in the stock market without thinking, then you ,may lost your money.
That’s why it’s important to know these markets well. Today read this article, get the details about the stock market, so that you can better understand it.
Let us know what the stock market is,
What is stock market or what is share market ?
The stock market, or the equity market are the same, so don’t be confused. This is a market where you can buy or sell company shares.
Definition of Stock market :
- A Stock market, Equity market , Share market is a marketplace where shares of public listed companies are traded. Its the aggregation of buyers and sellers of the stocks which represent ownership of businesses.
- A stock market or equity market is a public entity for the trading of company stock ( shares ) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.
I hope you now you understand what is stock market or what is share market ? Because it’s important to know about, Stock market / Share market before making Stock market investment.
Buying shares means you are buying a certain percentage of the company’s reputation. Which means that after buying the shares you become the owner of a certain percentage of the company. Now if the company will benefit you will get benefits and if that company loses, then you too will have to bear the loss. An easy-to-understand example.
Suppose you plan to open a start, you have 10,000 rupees but for those 10,000 rupees you will not work. So ask a friend to invest RS 10,000 in your startup.
That is 10,000 your share and 10,000 your friend’s share. Now both of your friends are becoming a 50-50 company partners. Any gain or loss in the future will be an equal share for both of your friends.
This is happening on a large scale in the stock market. Where a company can sell its shares to anyone in the world.
Stock market investing for beginners: essentials to start investing successfully.
Stock market / Share market history
This market was started about 400 years ago. A Dutch ( German ) company in eastern India and the Netherlands introduced the stock market concept for the first time. In fact, at that time trade was carried out by ships. Also, not all countries have been found. In such a case, the company used to ship its seafaring vessels. There was no money for anyone on these ships.
The Dutch East India Company had therefore urged people to invest in these vessels and told the people that where there would be a profit in trading in these vessels, then you would share the profits with your money. However, it was dangerous to do so at that time, as many ships did not return. So then they started to think differently. They decided not invest in a single ship. That is why these reformed people are now making a lot of money.
That is, a person invests in 5-6 vessels and not in a single ship so that one vessel can be expected to make a profit. In this way, stock markets began to take shape and people began to invest their money in many areas. The bidding process began when ships used to leave trade. Gradually, the need for money for ships began to be met and people began to profit.
This stock market concept started there, it became very popular. Today all countries rely on the stock market. Each company has its own stock exchange. Let’s understand stock exchanges.
Stock exchange : Stock Market Investment
Stock trading is where people buy and sell company shares. The market is divided into two parts.
- Primary Market.
- The second market.
Companies sell their shares in major markets. The number of their shares depends on demand. That is, if the demand for a company’s products is high and if that company sells its shares, then its value will be higher.
How many shares can the company have?
One thing to keep in mind is that the total value of a company’s share is equal. A company may transfer any value of its shares to the public, but the value of all of them will be equal.
Suppose a company costs 1 rupees and wants to sell its 1 lakh shares and the company can also save 1 lakh per share or can make 2 lakh shares for 50 Paise.
Apart from this, it should be noted that no company has ever sold all its shares. To maintain its reputation, the company retains more shares and sells fewer shares abroad.
Anyone with more shares decides the company. For example, Facebook company founder Mark Zuckerberg owns 60% of the company’s shares and sells 40% of the shares. In that case, Mark Zuckerberg could make all the decisions. That’s how the process of stock market investment goes on.
Now let’s understand the second market
In the second market, the people who bought the company’s shares can go out and sell the shares. Like you bought 10 shares of a company. You can go out and sell 5% of your shares. This market is a secondary market. Now it is up to you to sell those shares for as much or as little as you need.
Indian stock exchange
There are two major stock exchanges in India.
- Bombay Stock Exchange – There are about 5,400 registered companies here.
- National Stock Exchange – There are about 1700 registered companies.
Companies have Nifty and Sensex to measure their value. So learn about Sensex and Nifty to stock
For more details about Sensex you can read this article : Sensex Full Form & What is Sensex?
How do companies sell their shares?
When a company wants to sell its shares on the stock exchange, it is called a public listing. With this in mind, SEBI , (Securities and Exchange Board of India) was Established.
This organization decides whether your company should have a public list or not. It is only after all its terms have been finalized that the company can sell its shares among the people. If a company is not wanted in the market, SEBI removes it from the list of community members.
How can you buy stocks? Stock market investment :
In the past the process of buying stocks was a little different, but nowadays, with the advanced of the internet, you need three accounts. To stock market investment
- Bank account.
- Trading account.
- DEMAT account
You can open a Free DEMAT account on UPSTOX.
Shares purchased from the data account are stored in digital form. This is why Demat account shares are so important in the market. Those who buy stock markets are called RETAIL INVESTOR.
Retail investors are always in need of a broker.
What is a Broker?
The seller includes buyers and sellers. Just like you use a dealer while you are taking goods. These days most apps are built as consumers. Even your bank can play the role of a merchant. If you are investing in a market through a trader, you have to pay some of that money as a trading fee.
This value varies from 0.5 to 1%. In that case, the more you invest, the more you earn less money to trade.
Is the stock market a losing deal?
No, you do not have to lose out on the stock market. If you buy company stocks carefully, then you can benefit greatly. So It’s very much important to learn how to invest in stock market. And then you can earn money by investing on stock market or share market. The Scoop of share market or Stock market is so high. But you need to learn everything before stock market investment.
For example, suppose you bought 2,000 shares in a company for Rs. 1. Now the price of those shares has increased according to demand and if you sell this share for two rupees then you get a profit of Rs 2,000.
How can you get it from Stock Market?
How do you make money in the stock market? This is an important topic. Making money in the stock market, understanding, and strategies are very important. Apart from this, you must also be patient.
Let us tell you about some of the basics of successful stock market success.
Stock market investing for beginners: essentials to start investing successfully
1. Complete your homework : Stock market investment strategies
This means that whenever you plan to invest in a company, start by studying the company thoroughly. See the demand in that company’s market. Suppose now is the time of summer, when dating with AC is always very much needed. So invest in a company that sells these products and their required products. Then you can be profitable.
2. Participate in business
Never invest in stocks but invest in a business. A good example of this is that Warren Buffett invested $ 1 billion in Coca-Cola in 1988. And Now He is listed one of top 10 richest people of the world.
Do you know Warren Buffet’s famous investment strategies? I will tell you his 2 most famous lines for Stock market investment, Warren Buffet said,
- Never loose money in the market.
- Invest in stock market for long time to earn money.
3. Do not interrupt
By this I mean to stay away from the sheep. Do not invest in personal names. Read carefully first. You can contact an expert.
How to invest in stock market?
4. Always invest more
This is the best law to make a profit in the stock market. Always invest your extra money, which means money you don’t need in the short term. Sometimes the price drops and because of the need for money, we sell our shares for less. Never do this.
5. Look at the market
Just waiting for profits from investing is not the right step. It is important to keep an eye on the market. Be careful when stocks fall, when they bounce. Read newspapers, watch TV channels so you can take care of your shares.
The conclusion
Friends, in my article, Stock market investment. I have tried to assure you all about the stock market in very simple language. If you have any doubt then read it again or make comment below . I will rely to you. To avoid investing in the wrong place.
This article covers all topics such as what the stock market is, history, and how to make an investment. How to invest in stock market. In addition, we have provided some market terms in it to make it easier to understand. That’s why once you’ve invested in the stock market, then work with restraint and understanding. Read carefully and invest. Never invest in temptation. If you liked this article, share it.
This is from us today all about,
Stock Market Investment guide for beginners.
Thank You.