What is Share Market and How it Works

What is Share Market and How it Works

What is Share Market and how it works? How to make money by share market? How to buy and invest money in share market? These are the common questions which arise in the mind of common man.  Who does not want to make money in this world? Money is very important to meet the needs of every person. Only if we have money, we can fulfill our dream and without money, our dream will remain a dream. So today people in the world give more importance to money.

Everyone heard about Share market or share bazaar in Hindi but not everyone knows what happens there and how it works? So today I am going to tell you about basic knowledge of share market.

What is Share Market?

Share Market and Stock Market are a market where shares of many companies are bought and sold. This is a place where some people either make a lot of money or give up all their money. Buying a company’s share means to become a shareholder in that company. According to the amount you make, a percentage of the owner becomes the company you own. Which means that if the company has profits in the future, you will get twice or more than your money and if there is a loss you will not get any money i.e. you will have a complete loss. Just like making money in Share market it is easy to sip the money in the same way as the stock market fluctuates.

When to Buy shares in the Share Market?

You might have got a lot of idea of ​​what the share market is and how it works. Let’s know how to invest in share market? Before buying a share in the stock market, you should first gain experience in this line how and when to invest here and in which company you will invest your money, then you will get profits. Find out all these things and then go invested in the share market.

To find out which company’s shares increase or fall in the share market, you can read economic times like newspapers or you can also see NDTV Business News Channels from where you will get complete information about this.

This place is full of very high risk; therefore, you should invest here only when your financial condition is fine so that when you are in loss you do not have to make any difference to that loss. Or else, you can also do that in the beginning you invest in a small amount in Share Market so that you do not have much shock going forward. As you grow knowledge and experience in this field, you can gradually increase your investment.

Before investing in the share market, you need to know more about this market or you will get too much risk in this market. Many times it happens that some companies are fraud and if you buy shares of that company, then such company will take your money and run away. And then all the money you put in you will get drowned. Therefore, before buying any company’s shares check their details of the background properly.

How to Buy or How to Invest Money in Share Market?

To buy a share in the share market, you have to create a Demat account. There are two ways; first of all, you can open a Demat account by going to the broker. Our shares are kept in the Demat account, just like we keep our money in a bank account. If you are investing in the share market then it is very important to have your demat account. Since all the money that you get after making the profits will go to your demat account, not in your bank account, and the demat account remains linked to your savings account. If you want, then you can transfer funds from demat account to your saving account.

To create a Demat Account, it is very important to have a savings account in any of your banks and for proof you need copy of pan card and address proof. Another way is to go to any bank and open your demat account.

But if you open your account with a broker, you will benefit from it more. Because he will give better support and secondly, according to your investment, they suggest you a good company where you can put your money. They also take money for doing so.

There are two main stock exchanges in India that are Bombay Stock Exchange (BSE) and National Stock Exchange (NSE); here the shares are bought and sold. These brokers are members of stock exchange; we can only trade them in stock exchange. We cannot buy or sell any shares directly in the stock market.

If you want to earn a lot of money from the share market then try to get the full information about it. Without getting proper information, investing in it can cost you a lot. So do not take any decision hastily and act wisely. I hope you have got knowledge about what is Share Market and how it works? Please share this post to your friends as well so they will also know all about share market and how to invest money by share or stock market.

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Romil is a blogger who loves to write on several topics from last few years.