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Important things about share market | Precautions to take when buying Share

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Hello friends, Here we will read about share market. Nowadays investment in share market is on the trends. Peoples are investing their hard earned money without taking proper knowledge and guidance. After some time they lose their money. So here we will see all the Important Things about Share Market and Precautions to take when buying Share.

Basic about Share Market?

Stock Market or share market is the place where Shares of any company, Debentures, Mutual Funds, Derivatives of companies etc are bought and sold. Shares are primarily bought and sold through the Stock Exchanges.

There are two main stock exchanges in India which lead to all types of stock exchanges. These two stock exchanges are in Mumbai Maharashtra, India.

  1. Bombay Stock Exchange (BSE)
  2. National Stock Exchange (NSE)

Before going to our main topic i.e. “how to invest money in share market” we should know about some terms such as What is Share, What is Exchange, What is Mutual fund?, What is Sensex and Nifty, etc. After understanding all these terms we can easily understand all about share market.

 

What is Share?

Share is the smallest part (Unit) of any company to buy and sell. Share is also called as Stock.

For Example, a company will be established by $1000. Company owner will divide this amount into small pieces for investors.suppose he divided the company into 100 units to investment than 1 piece will equal to $10. It means a share of this company will be 10 dollars .10 dollar will be the smallest amount to invest in this company. we can buy 1 or more shares as per company’s rules, terms and conditions.

Benefits/Losses of share

We can sell Share in two ways:

  1. Dividend
  2. Share Value Growth

The dividend is the method of earning from shares in which you become a partner of the company.companiy’s loss and profits will be yours. if the company is in profit you will get your some percentage of profit according to your shares and company management. if the company is in the loss you are also at a loss.

Whereas in the case of Share Value Growth,  we keep for some time and sell when their price increases. if the company’s share price increases you will be at the profit.

What is Nifty?

Nifty is a combined word of National Stock Exchange and 50 words, it is also called Nifty 50, but most of the people usually use it as Nifty.

Nifty is an important benchmark of the National Stock Exchange of India, it is an index of the 50 major shares listed on the National Stock Exchange, it monitors the shares of those 50 major companies of the country.

What is Sensex? 

When we talk about share market, sensex is the most important word used which is everywhere. Sensex is a sensory index of the stock market. Sensex is the benchmark index of our Indian stock market, which tells the speed and slowdown in the price of the listed stock in BSE (Bombay Stock Exchange)
The term Sensex was coined by Deepak Mohini, which is made up of words with sensitive and index words, With the help of Sensex, we get information about the performance of the 30 largest companies listed in BSE.

What is Equity?

Equity Market is the aggregation of buyers and sellers who are bought and selling the shares or stock. As we know that the terms “equity market” and “stock market” are synonymous with each other. The stock market allows investors to buy equity interest.

If we buy Equity interest it enables them to participate in the company’s profits.  Equity’s money represents ownership. We also get corporate bonds and convertible bonds along with equity shares.

About Share Market?

This is a MARKETPLACE where the shares’ buyers and sellers come together to buy and sell, They buy or sell shares physically or virtually.

The participant in the stock market can be a small minor investor and large investors,

 

Benefits of trading in Share Market

Your deposit capital grows with a lot of money. On long-term investments in stocks, you can get more benefits than the fixed deposits in banks etc.

  • When you start to invest your money in a sharemarket, it gives you along term benefits.you can earn money from sharemarket and fix deposit its profit in the bank.you will get the double source of income.
  • The dividend is another source of income on regular basis from the shares.
  • Unlike real estate shares can be easily Buy and sold.
  • Handling and management of shares in the sharemarket are very easy as compare to other investment businesses your investment.
  • There is a good thing associated with share market is that you can start with fewer money .you do not need a big amount of money to invest in stocks.

Some important things with respect to buying shares

  • View the company’s performance.
  • See the  Company’s work?
  • what will be the future scope of the company?
  • is the company is profitable at that time when you are buying its shares?
  • See the valuation of shares\
  • Do not buy shares of more companies
  • Money should not be invested in more companies in the same sector
  • Compare a stock price with its actual value.
  • Always try to invest for a long time.
  • Always keep patience in your heart as well as in mind, Don’t hurry to get profit.

 

Some important fact about Share Market

  1. Bombay Stock Exchange (BSE)  located in India is the biggest stock Exchange in the world because BSE has listed around 5700 companies which are the largest list as compared to the world’s other stock exchanges.
  2. In India, only 2% of saving of all Indian peoples goes as an investment in equities.
  3. Amsterdam Stock Exchange is the oldest stock exchange in the world. It was started in the year 1602.
  4. Warren Buffet’s Hathaway’s shares are most expensive stock. Priced at USD around 21 lakh per share.

 

 

Thanks, Friends
Here we have discussed All important things related to share Marketing.

I have tried my best to explain all Important things about share market. I hope you like this post. If you like please leave a comment below, it will motivate me. if you have any problem or suggestions about this post please feel free to contact us on mail id how2earn.co@gmail.com.

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Vinod Ahirwar

I am Vinod Ahirwar, founder of www.how2earn.co website, belonging to Tikamgarh, Madhya Pradesh India. I have done Graduation (B.Sc.- 2013) in Science Stream (Zoology Botany and Chemistry) from Dr.Hari Singh Gour Central University and M.Sc.- 2015 in the field of Botany. After M.Sc. I started PhD in the field of Ecology, but fortunately, I got selected for a Government Job, so I closed my PhD.

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