In this article, we have tried to understand all the aspects of Share Market in easy language. Here we will understand what are the stock exchanges of India, how they work, what are their indices. How can the language of the stock market be understood, how should shares be chosen for investment and how do they get returns. What are the ups and downs and what is the risk in this market and how can we reduce it?
Don't want different talent
The stock market is a dangerous game, it is very important to get as much information about it before jumping into it. But this does not mean that any different kind of talent or ability is required to invest in the Share Market. Anyone can try and know what are the shares and can get information about the stock market.
Share Market Information
We are afraid of what we are unaware of, but as we begin to know it, our fear of it decreases. Find out how you can get stock market information and how to keep yourself updated in the stock market on our site.
Benefits of Investing in Share Market
The most important advantage of investing in the Share Market is the possibility of increasing investment. The stock prices of a company listed on the Stock Exchange rising and fall regularly. But if we stay invested for a long time, we can see our fund value increasing considerably. Investing in well-known and stable growth companies is always profitable. Investing in different stocks will help you to take advantage of the growth in various sectors of the economic system. Rising prices in the stock market are the biggest reason for investing in the stock market, which benefits investors.
Most of the companies pay a part of their profits to Dividend shareholders. There is a possibility of getting Dividend even if the share price is decreasing. Dividend income is in addition to profit from the share price.
Bonus and Right Share
Companies also benefit their shareholders through bonuses and the right shares. Fast-growing companies give bonus shares and rights shares at a lower price than the market price to their shareholders.
Company ownership stake
By purchasing shares, you become the owner of the company in proportion to the number of shares. With this, the shareholder also gets many rights.
Ease of selling and buying
In the era of online trading, you can buy and sell any listed share in trading hours with one click from your trading account. For this, you have to open a Demat account and a trading account with a broker.
If your investment gives you low returns in inflation, then your investment is decreasing rather than increasing. Historically, stocks have always given higher returns than inflation.
Disadvantages of Investment in Share Market
The risk associated with investing in the stock market is first. Know the disadvantages of investing in the stock market in detail:
You can also lose your investment. If a company performs poorly, investors start selling the stock, causing the share price to fall. In such a situation, you may incur a loss on your investment. If you cannot afford to lose your investment, you should invest only in mutual funds or fixed-income investment instruments.
It is very important to learn the aspects of investing in the stock market and stay up to date by getting the latest information here. The first to get the right information can live here in profit. Investing based on rumors, wrong tips and any other kind of misinformation can be harmful.
Emotional ups and downs
The share price keeps on decreasing and increasing. In greed, investors buy shares at an increased price and take the loss by selling at low prices due to fear.
Investing here requires information and research. For this, the Annual Report and Balance Sheet should be read and understood. You have to constantly monitor share prices and invest only when prices fall in a recession. Similarly, the opportunity to exit when the price increases are also understood.
Stock Exchanges in India Stock Exchange of India
The stock market is traded on the stock exchanges only. There are two major stock exchanges in India
Bombay Stock Exchange
National Stock Exchange.
BSE i.e. Mumbai Stock Exchange is one of the oldest stock exchanges in the world. Both stock exchanges in India operate on computer networks using modern technology. Learn in detail how stock markets work. The stock market is actually a network of computers on which investors order through their brokers who buy and sell shares, which are matched at high speed by high-end software.