Share Market – Best Share Market Tips 2022
Share Market this is our first blog on this site. We hope you all loved this blog and show your love to our all blog. So now we come on point.
Today in this blog we discuss share market? We try our best to solve your all question regarding share market? Some question which arise in your mind like What is Share Market?, What is the history behind share market? How we invest in it and earn some profit? What are their advantage and disadvantage? etc.
Share Market Means?
Share market is that type of market in which you buy or sell a company’s share. And in simple words, you say that, if you invest your money in the company, then their profit or loss share with you.This is also called the stock market or equality market. Now you all think that how much profit or loss you gain or loss? It depends how much you invest. For example, If you invest 5% in any company then if this company earn some profit then you gain 5% profit of those company’s profit in which you invest and if the company go in loss, then you also suffer from 5% loss of their all loss.
In this way, you can earn lot of money but remember that you also lost your money. And the other best way to understand What is Share market is then we take some easy example is that If you want to start a company but you have not enough money for starting, then you go near your friend and make him partner in your company and start together.
Then in future if your company gain profit then you both share this profit (50% is your and 50% is your friend) and similarly, if you are suffering from any loss they you both suffer equally. Exactly this thing happens in share market, the only difference is that in which you can’t go near your friend. You directly go in all over the world and find investor who invest in your company and in future you share your all profit or loss according to their percentage of investing. This process has happened on a large scale.
What is the history behind the Share Market?
Share market origin is near around 400 years ago. Around the 1600s, there was a Dutch East India Company like the British India Company. There was a similar company in the company of Netherlands today, known as Dutch East India Company. In those times entire world map is not discovered properly. So a company sends ships to discover new lands and trade with faraway places.
But the problem has arisen is that the company has not enough money to send their ship because in this process a lot amount is used and that time no one individual have this amount.
So they go in front of people and ask for some help from him and told them that if they invest in it so they share all the treasures or money which they earn. But this is very risky because those time no one has guaraantee that a ship is coming back or not so the investor decided they invest in 5-6 ship except one ship.
So in this way Share Market starts. The company who have a shortage of money then they go in front of public and the public also gain chance to earn money. Today, each company has its own stock exchange. You see now almost every company is depend on share market.
What is Stock Exchange?
Stock Exchange is a place where we can sell or buy a share of the company.
We can divide these markets into two types:
- Primary Market
- Secondary Market
In Primary Market company sell their share. In this company decided how many value they put off their share. It is fully based on regulation, but the company does not do too much up and down because it fully depends on people’s demand that how much they will be interested in investing. So nowadays the company decided that in which range they sell their share. The company decided maximum and minimum range of their share.
And the point is that the company never sells their all share, they sell less than 50% share because if they can’t do that they lose their decision right and ownership and who buy those shares become an owner of the company and take decision.
Secondary Market is that market in which those people who buy a share of the company can also sell those shares to other people.
Almost every country has their own stock exchange. There are two popular stock exchanges in India. One is the Bombay stock exchange, where almost 5000 company registered and the other is the National Stock exchange, where almost 1700 company registered.
If we want to see that the prices of the share of the companies go up and down, then for doing it, some measurement will make for us which we called Sensex or Nifty.
What is Sensex?
Sensex shows the average of 30 company of the Bombay Stock Exchange that their share prices move upward or downward. The full form of Sensex is Sensitivity Index.
What is Nifty?
Nifty is standing on National+Fifty. Nifty show the price fluctuations of the share of top 50 companies listed on National Stock Exchange.
How to Sell Your Company’s Share?
If anyone want on to sell their share on the stock exchange is called Public Listening. If a company selling it shares first time, then it is called Initial Public Offering. At the time of East India it is very easy to selling a share for the company but now it is very difficult. And this is right because if there are no difficulties then scam will happen to anyone easily and a fraud company takes the money of investor and runs away.
This type of scam happening in India many times in which two scam you know may be. So seeing all these things, the stock exchange made many rules and regulation for selling the share.
Now if you want to sell your share, then you need to fulfill the norm of SEBI(Security and Exchange Board of India) which see that which company is listed on stock exchange and it can be done in proper manner or not.The norms of SEBI is very strict like they check the balance and accounting of the company.
At least two auditors check the company’s accounting.This It may take entire process three years. If you want to list your company publically then in your company over fifty shareholders already present.And when you go for selling your share than no one demand for your share in public, then the chance is increased your company may be drop out from the list.
Two most popular scam which happen in India in the Share Market
Harshad Mehta Scam
This scam happens in 1992. He illegally gets money from several bank accounts using fake bank receipt.it also known him as the Indian stockbroker. He is dying in 2001 in jail because of a heart attack. After this scam, he became rich. And SEBI increased their rules and regulation.
Satyam’s Scam
This scam is happening on a large scale from Rs7800 crore to Rs12,300crore. This scam comes in light in 2009.
Advantage Of Share Market
- In a short time you have got a high return of your as compared to other investment like bank FDs, Saving Account, etc.
- If you invest in any company, then you also got little ownership according to your share by which you got voting right in the company’s decision.
- You got tax benefit.
- You also sell your shares.
- The company also provides an annual income as dividend to the shareholder.
Disadvantage Of Share Market
- It is perilous to invest in share market because the if company’s performance is moved in a downward direction and suffers with loss, then you also suffer with loss because you buy their share.
- The brokerage charge by them is high, leading to lower profit margins for the investors, making the investment option less attractive
With experience and past losses, the investors learn the stock has to be analysed first and invested later. - Most of the investor go in loss due to lack of knowledge of investor.
- By introducing online trading, the act of trading securities itself has become simple and quick, but the process of registration, like opening a Demat account, is a little more time-consuming.
How you reduce the chances of your loss
- Make your goal before investing.
- When you are new in the market, then do full research about the sector,goverment policies, its management and its past financial statements and compare its position to its competitors as well.
- Not invest all your sharing in the share market.
Conclusion
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Queries on What is Share Market?
Ques1- How many sectors are there to invest in the Share Market?
Ans1- You can invest in 11 different sectors.
Ques2- Is it safe to invest in the United Stock as a beginner?
Ans2- Before doing it, take all types of information and expertise advice by which chances of loss get reduced and it becomes less risky.
Ques3-How to find excellent companies?
Ans3- You can find many online tools to find outstanding stocks like the stock screener.
Ques4- Where can you get company information?
Ans4- You can get all the information on the company’s site.
Ques5-Can you become a millionaire by investing in stocks?
Ans5-Yes
Ques6-Should you use a stop loss on your investment?
Ans6-Its depends how much long invest you are
