Hello and welcome to expand wisdom. If you thinking to invest in share market then you are in right place. If you invest in fixed deposit, debt fund, real estate and gold then average return of them are 5 to 7%. But in mutual fund and share market the average return are 12 to 18%. Today I am going to talk about “What is share market? How to invest in share market?”. If you want to know more about share market then stay with us till the end.
Introduction of Share market
Share market is a platform where anyone can buy and sell shares of company. In India to share market are almost popular name as NSE (National Stock exchange) and BSE (Bombay Stock exchange). NSE was established in 1992 at India. BSc is located in Mumbai. It was established in 1875 by Premchand Roya Chand.
The origin of share market dates to around 400 year ago in douch region. During, this time they have business along the world but they had not enough money to travel big ship into the world. They told people to invest in their ship. After the travel and business in world, they were promised share of this money or profit. In Mumbai, this type of process come. This investing process expanded in all over India mainly cities like Kolkata for jute, Surat etc. The participancy of invest in Mumbai increased and vice Versa member of broker also increased. After many years they found a place a started origin of Bombay Stock exchange in 1875.
So this is Introduction part of what is share market? How to invest in share market?
Primary market and secondary market
There are two part of share market
Primary share market– when a company offers is share after entering in stock exchange is known as primary share market. In this market those people who buy share from Stock exchange are first owner of share after company. This is known as IPO (initial public offering).
Secondary market- secondary stock market is that when share are selling by share Holder. After IPO many traders and investor want to sell stock. In this market any buyers and sellers buy and sell stocks. Mostly traders are trade from secondary market.
What instrument traded in share market?
There are mainly four types of profitable instrument which are traded on stock market.
Shares– If any company distribute their shares through IPO and anyone can buy, the share is ownership in any company. This ownership is in 0.0 something percent or more than 50% depends on investor. Crusher market mainly shares are trade in wast manner.
Bonds– if any company doesn’t want to distribute their shares. They can issue bonds. Buy bonds company can take loan by public for long term. There are many types of bonds are available in market. The bond are fixed instrument to profit. If company are not in profit but they have to pay interest in bonds. Government bonds are provided by government.
Mutual funds– mutual funds are those points which are collected by some peoples are group of people and invested in many financial area. This mutual funds are contracted by many company. Many mutual funds company directly invest in stock market we invest in mutual fund. There are many type of mutual fund available in market of India like hybrid funds, equity and debt or many more.
Derivatives– derivative so is basically security that derives its own values in the given security.
How to buy and sell shares in share market?
If anyone want to buy and sells shares in share market then he must have a demat account. Demat account can be open with various stock broker. There are following step you will have to follow for opening demat account.
Step 1 First go into Play Store and install a broker app where you opened your demat account. Open the app and click on add money. Add money as you want.
Step 2 Search for company whose you want to buy share click on the company. The price of share given in your phone. Click on the buy button. Select which type you want to buy share delivery or intraday.
Step 3 Select of the price limit, if you want to buy this years in a limit order then set limit. If you want to buy share in market price then click on market order. Click on confirm by after selecting quantity.
The share will be added in your portfolio. If you want to sell this share then click on portfolio, verify it with OTP and sell. So, this is all about trading part of “What is share market”.
How many types of share in share market?
Based on market Cap, share can be divided into four types. There are many more ways to classify stock.
Large cap– Large cap share are share whose company market cap are more than 20000 crore.
Midcap– Mid cap share are those share whose Market capitalization between 5000 crore to 20000 crore.
Small cap – small cap stocks are those shares whose market cap between RS 500 crore and 5000 crore.
Micro cap– Micro cap shares are those whose market cap between rs 50 crore to 500 crore.
We can identify the rock size of the company and can also estimates some of the basic characteristics of the company.
Minimum amount required to invest in share market
There are many stock broker available in stock market. You can start investing within 1 rupees in share market but 1 Rupee is only for Penny stock. Starting investment depends on your timing and experience in market. If you buy and stock in delivery. Then they provide you in the same price as share available but in selling time they charge you brokerage, charges and some Taxes. If you are a starting investor then you should start with minimum 54 learning period.
After sometime you have enough basic experience of share market. Then you should start investing in deep and investment in various share.
So this is all about “what is share market? How to invest share market?”. It is high probability to return from stock market but it is riskier then other investing. If you haven’t any basic knowledge don’t invest your useful money in share market. Share gives you very high return then other investing. There are also some uncertainty, market crash, fluctuation in market price also in stock market.
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1 Is BSE owned by government?
2 Who made Sensex?
coined by Deepak Mohoni
3 How many stocks are listed in India?
over 7,462 companies
4 Who is the owner of BSE?
Shri Ashish kumar Chauhan is the MD & CEO of BSE
5 Why is Nifty important?
Nifty lists the companies according to their stock market performance