“Here, you will find answers to the basics of the stock market.”
The stock market is a market where you can buy or sell shares. Let’s have an example of a fruit market where you can purchase any of your desired fruits, the same as you can purchase any of your favorite share of the listed company. It facilitates the trading of securities like shares and bonds. In one sentence you can define the stock market i.e. one of the mirrors of our economy.
Table of Contents
‘Understanding Stock Market: Let’s Navigate your investing Journey‘
“What is Financial Market?”
First let’s discuss the financial market because the stock market is like one part of it. A financial market is an overall place where equities, commodities, currencies, and bonds are traded. It determines asset prices. The financial market connects investors and borrowers all over the world and allocates resources.
“What do you mean by stock market?”
We have discussed an overview of it in our introduction part. If we define the stock market in a general way, it is the place where you can buy and sell shares. In other way it is said as share market also. It is like the backbone of the economy of any country.
“What is investing in the Share Market?”
In the stock market there are two ways to continue your journey, one is investing, or people say it is delivery and other is trading. In trading there are various ways like intraday, swing trading etc. But investing is a long-term scenario where you must be invested in a certain stock for a longer period. You can invest in shares through a SEBI-registered broker who trades on your behalf.
“Most common terms in Stock Market?”
- Share: a part of ownership of a single or multiple companies.
- Stock: it is a bunch of shares of a single or various companies.
- BSE (Bombay Stock Exchange): India’s oldest stock exchange, listed 5000 and more shares. It was established in 1875.
- NSE (National Stock Exchange): a leading Indian stock exchange and the fourth largest of the world, with over 1,600 listed stocks. It was Founded in 1992
- Nifty 50: the 50 largest stocks listed NSE (National Stock Exchange). It indicates the market sentiments like upward means bull run or downward means bear run.
- Sensex: index of BSE (Bombay Stock Exchange). It also shows market sentiments.
“How can I buy shares?”
You can buy shares very easily follow these steps to understand it easily:
- Approach a SEBI-registered member (broker) of a stock exchange i.e. Zerodha, Upstocks, kotak Securites etc.
- After that you must open a trading account by doing KYC process with your broker. Now you have a trading account where you can trade and a demat account where you can have your shares in delivery.
- To execute transactions in the stock market you should have the above account so that you can buy or sell shares in the stock market.
“Can I invest 100 rupees in stock market?”
Absolutely yes, the minimum quantity to buy share is one so you can buy a stock which price traded 100 or below of that.
“How to study stock market?”
Before doing anything, you should gather knowledge of it first. Perhaps there is no specific course, or anything till now but it is heard that it will come soon with various educational curriculum. But here are some of ways through which you can study stock market given as under:
- Read investment books
- Read financial blogs or articles.
- Approach a mentor who can guide you
- Refer successful investors so that you will have a better idea of it
- Go through business news channels
- Attend seminars and take classes of anyone who provide this
- In The True HR, you can also find articles and videos which will surely help.
- After doing the above ways bonus tip is, learn from your mistakes.
“Can I accumulate significant wealth by investing in the stock market?”
The answer is yes. But it is not an easy task but if you have financial market knowledge and you know trading psychology then it will be easier for you. It will take some time to achieve this. Patience is one of the major keys to being successful in the stock market. Investing wisely and if you are with us, The True HR then we can guide you to be successful investor. We are not recommending any stock; we are like your mentor to give you light so that you can search your path in the stock market easily.
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