Why Investing In The Stock Market Is A Smart Move

LET’S BEGIN WITH SHARE MARKET BASICS.

WHAT IS SHARE MARKET?

The stock market is a place where shares are either issued or traded. The stock market is similar to the share market, with the key difference being that the stock market allows you to trade financial instruments like bonds, mutual funds, and derivatives, as well as shares of companies. The share market only allows trading of shares. Start Your Journey on the Share Market. The key factor is the stock exchange – the basic platform that provides the facilities used to trade company stocks and other securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock buyers and sellers. India’s premier stock exchanges are the Bombay Stock Exchange and the National Stock Exchange. Click here to understand The Functions Of The Stock Market.

THERE ARE TWO KINDS OF SHARE MARKETS – PRIMARY AND SECOND MARKETS.

Primary Market:

This where a company gets registered to issue a certain amount of shares and raise money. This is also called getting listed in a stock exchange.

A company enters primary markets to raise capital. If the company is selling shares for the first time, it is called an IPO.

Secondary Market:

Once new securities have been sold in the primary market, these shares are traded in the secondary market. This is to offer a chance for investors to exit an investment and sell the shares. Secondary market transactions are referred to as trades where one investor buys shares from another investor at the prevailing market price or at whatever price the two parties agree upon.

Normally, investors conduct such transactions using an intermediary such as a broker, who facilitates the process. Different brokers offer different plans. Likes Kotak securities >Zero Brokerage Intraday, Zerodha & AngelOne>Flat Rs-20/-/Trade.

HOW TO INVEST IN SHARE MARKET

First, you need to open a trading account and a Demat account to invest in the share market. This trading and Demat account will be linked to your savings account to facilitate a smooth transfer of money and shares. Note that Demat and trading accounts are different. Open Your Demat & Trading Account Now …..