Hello friends, Welcome to all of you on this blog, where I am going to tell you all about the Share Market (stock market) in very simple terms and everything in detail what is the stock market? How to Invest money in the stock market? What happens BSE and NSE? What are indexes(Indexes)? What is the best time to invest money in the market? We will learn a lot more on this blog of today!
What is Share Market?
Share means share, and Market means a place where we can buy and sell, a place where we can buy and sell a company’s stake is called a stock market. It is also known as Stock Market.
What is BSE & NSE?
Stock market is traded on the basis of stock exchanges.
BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), it is india’s two major stock exchanges, of which Bombay Stock Exchange is one of the oldest stock exchanges in the world.
Both of these stock exchanges work on computer networks. We can all easily buy our shares through these stock exchanges.
What is Share Market Indexes?
Indices are made up of shares of strong companies in different sectors.
The main indices of BSE are Sensex (Sensex) and NSE’s main index is Nifty (NIFTY). Market activities and stance can be easily assessed by looking at these indices. And their indices are also determined on the basis of companies of different capitals, such as Large cap, Mid cap, and Small cap indices.
Indices in different sectors are also designed to represent the share of their industries, such as agriculture index, banking index or pharma index.
How to Buy Shares in Share Market?
You need to open a Demat Account with a broker of your choice to buy Investment or shares in the stock market. You can now open three-in-one accounts in your bank which will include Saving account, Demat account and Trading account. These brokers may also have to pay you some annual maintenance charges so that the shares you buy can be extremely safe. Some brokers may also have to pay brokerage fees to buy and sell shares.
What is Portfolio & How to Diversify it
The list of shares we buy is called portfolio, when we buy a stock in our demat account, it joins our Portfolio.
The performance of different companies over the years varies, some are bad and some are good. diversify Portfolio means that while making your Portfolio, it should be taken care that the risk of investment is minimized.
What is Bulls & Bears?
Generally, when the market booms, we speak of it as the bullish (bulls) market and when there is a slowdown in the market, we called it the bearish (bears) market. It is very normal that even in the bullish market, some poor stock, do well and the price of a good share in the bearish market falls.
How to Choose Best Shares
You need to make a thorough research to include strong shares in your portfolio. You should never choose a share based on someone else’s suggestion.
If you are going to invest your money in the stock market for the first time, you must do it with FMCG (Fast Moving Consumer Goods) and Blue Chip companies and you must also turn to Large Cap Companies so that your risk can be minimized.
What is Multibagger Stocks?
All of you must have heard how an investor has invested money in a stock and become an overnight billionaire. The only secret stokes has to become a billionaire is to search for stocks that are multibagger multibaggers, which means stocks that can return twice, triple or more in a few months or a few years, we call Multibagger Stocks.
Perfect Timing to Invest in Stock Market
Look, first try to understand that there is no exact time in which putting money in the stock market makes someone rich. We should invest in the stock of a company only if we are fully confident of that company that it will definitely make profits further.
For this, you should first be fully aware of the stock market, and also your selected company.
What is the Formula of Age & 100 in Stock Market?
A younger investor can invest in the market with more risk as he is not burdened with too much responsibility as an early investor has a lot of time. Due to the high responsibilities of an investor of 40 and older, one should invest defensively and not too aggressively.
The age and formula of 100 is also very helpful for investing. According to this formula, reduce your current age by 100, and invest the remaining count in the stock market according to your current amount. For example, if you are currently 45, invest 100-45 = 55% of your deposit in the stock market.
Return on Shares
The investor, by becoming a shareholder of a good company for a long time, takes advantage of it by selling the increased share prices of the company. Every investor buys shares with the same expectation that he can get a good amount of shares in the near future. Large companies also provide Dividend, Bonus to their shareholders to express their gratitude.
We can easily invest in the stock market by getting all the in-depth research and complete information, and it is very important to invest in this modern world of today so that we can also be partners in the growing earnings and profits of good companies and quickly jump the GDP of our country.
Friends, hopefully you liked this article very much and it may have given you a lot of information. If you like this information, be sure to share it.