What Is Share Market? How To Earn Money By Investing IN Share Market? –
At present, there are many people who are looking to invest in the share market. There are also many people who are already investing in the share market and getting better benefits. In the last few years, the number of people investing in the stock market has increased a lot, this is because there have been many cities which have given very good profits to their investors and made them rich. If you also want to get more information about Share Market, then in this article we will tell you what is Share Market? How to earn money by investing in share market?
What Is Share Market?
Before understanding the share market, it is important to understand what is a share? Actually the Hindi meaning of share is share. That is, when you buy shares of a company, it means that you hold your stake in that company. When a company wants to raise funds for its growth, it invites people to stake. That is, that company issues its shares. Any common investor can buy these shares and keep his stake in the company.
Now let’s talk about what is Share Market? When a company issues its city, an exchange is created to sell those shares, which is called Stock Exchange. You must understand very well that the process of buying and selling is done in any market. In the same way, the place where shares are bought and sold is called Share Market. Here you can buy shares of only those companies which are listed in the stock market. The stock market is enacted by SEBI.
How Many Stock Exchanges Are There In India?
Let us tell you that there are two stock exchanges in India, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), where shares of listed companies can be bought and sold. The index of Bombay Stock Exchange is Sensex which is based on top 30 companies. Apart from this, the index of the National Stock Exchange is Nifty which is based on the performance of the top 50 companies. By looking at these indexes, it can be found out what is the condition of the stock market. If the Sensex and Nifty go down compared to the previous day, it means that the performance of these top companies has been poor.
How To Earn Money By Investing IN Share Market?
If you want to earn money by investing in share market, then it is important for you to have good knowledge about share market. Many people do not know well about it before investing in the share market and invest in the stock of any profitable company. Sometimes they make profits but sometimes they also have to face huge losses. Before investing in any stock, it is necessary to gather complete information about that company and its past performance.
For your information, let us tell you that you cannot buy and sell shares directly by going to the Stock Exchange. A broker is required to buy and sell any stock. For this facility, many brokerage firms have been created from where you can buy and sell any stock. Investing in the share market is not a difficult task. But here before investing in any stock, you must have a Demat Account and Trading Account.
What Is Demat Account?
If you want to trade in share market then you must have Demat account. Whenever you go to open an account in a brokerage firm, it opens your trading account, after which you can start trading. But along with this Trading Account it is also necessary to have a Demat Account. When you buy a share, the price of that share is debited only through Demat Account and at the same time your share is saved in Demat Account in electronic form.
After opening Trading Account and Demat Account, you can go to any share market trading platform (for example UpStox) and invest in the shares of any company. Investing on this platform is very easy and here shares of any company can be bought and sold in just one click. If you buy a share at a lower price and sell it at a higher price, you make a profit. In this way you can earn money from share market. However, it depends on the performance of the market whether the price of a stock will go up or down.
After this, when you sell that share, that share is debited from your Demat Account and the price of that share is transferred to your Demat Account, which you can transfer to your Savings Bank Account. If you want to open Demat Account, then for this you should have PAN Card, Address Proof, Passport Size Photo, Saving Bank Account with Internet Banking and Canceled Check of Saving Bank Account, etc.