What is Stock Market or Share Market? What are the things that constitutes Stock Market? Stock Market basically, deals with issuing and trading of shares. Stock Market is everything about shares. So, before getting into what is stock market and how to make money through it, one should know what are shares?
When we talk about shares we talk about a particular companies share. Share of a company means ownership of it. The total number of share we have of a particular company it represents the total number of ownership that one have in it. Shares are nothing but a part of ownership of its company. The more number of shares you have the greater ownership you have in the company.
Share are also referred as stocks or equity. Each stock has a unique symbol in share market. For example:- Reliance Communication is represented as R COM. This symbol is used in the stock market to refer it instead of using the company's full name. Whenever one wants to trade with any stock in the market it refers its symbol while buying or selling. This is known as its script name.
A stock is represented as a "Stock Certificate". This is a small piece of paper that is proof of your ownership. Now a days everyone has a demat account and now there are no certificates. Everything is done directly through computer electronically just by few clicks of a mouse.
Once you have decided you want to make some investment in this share market then its very easy to start. You simply need to open a demat account in any of the bank that enables online trading. You can also do the trading through some broker. There are many of them available in the market. Only thing is that before working with any broker be sure that it is authentic and provides best service among all.
There are two ways of trading either you trade directly through your demat account or you trade with one of the brokers above mentioned. If you trade through a broker then you simply need to tell him which stock you need to buy or sell and that he will do it on your behalf. It charges around 1% or 2% of your profit. If its lose then its entirely yours.
They do send alert regarding hot shares in the market to buy or sell.
Another way is you trade directly online through your computer. In this case you simply need to open your demat account in any one of the trading bank and now you can directly buy or sell shares online and make money. But play safe as you loose more early then you earn money.
Stock Market is considered to be the most volatile market in the world. The way it fluctuates or changes no other market does. So, there is the possibility to become a millionaire over a night as well as to become bankrupt within seconds. That's why i always say play safe in this market.
By saying play safe i mean, invest only that much amount in the market whose lose you can bear. Never invest your entire saving in your greediness. It is the most unpredictable thing. There is no fixed theory or rules based on which one can earn money.
It is purely the study of over the time of how market has been moving during the period of time and again your luck.
When one buys a particular share on lower price and sells it on higher price then, he earns his profit or when sells higher and buys on lower price. Both way its possible. You can buy also and then sell or sell first then buy at lower rate. Its purely your choice what you want to do.
As i said share is nothing but your ownership in the company's asset. So, you do have share in the companies assets. Sometimes company does distributes its share of profit among its share holders in the form dividends. But its not necessary. Company distributes dividends yearly or half yearly.
Owing a stock doesn't mean that you have the power of making decision in the company. It just mean that if a company earns profit and as a result its stock prices go high then your stock price will also raise and you will get your part of profit on selling that stock.
When we talk about shares we talk about a particular companies share. Share of a company means ownership of it. The total number of share we have of a particular company it represents the total number of ownership that one have in it. Shares are nothing but a part of ownership of its company. The more number of shares you have the greater ownership you have in the company.
Share are also referred as stocks or equity. Each stock has a unique symbol in share market. For example:- Reliance Communication is represented as R COM. This symbol is used in the stock market to refer it instead of using the company's full name. Whenever one wants to trade with any stock in the market it refers its symbol while buying or selling. This is known as its script name.
A stock is represented as a "Stock Certificate". This is a small piece of paper that is proof of your ownership. Now a days everyone has a demat account and now there are no certificates. Everything is done directly through computer electronically just by few clicks of a mouse.
Once you have decided you want to make some investment in this share market then its very easy to start. You simply need to open a demat account in any of the bank that enables online trading. You can also do the trading through some broker. There are many of them available in the market. Only thing is that before working with any broker be sure that it is authentic and provides best service among all.
There are number of brokers like Angel Broking, ICICIdirect.com, sharekhan, kotaksecurities, Aditya Birla Ltd., IndiaBulls, IndianStockmarket.net, IndiraSecurities, Motilal Oswal, UTI Securities etc.
There are two ways of trading either you trade directly through your demat account or you trade with one of the brokers above mentioned. If you trade through a broker then you simply need to tell him which stock you need to buy or sell and that he will do it on your behalf. It charges around 1% or 2% of your profit. If its lose then its entirely yours.
They do send alert regarding hot shares in the market to buy or sell.
Another way is you trade directly online through your computer. In this case you simply need to open your demat account in any one of the trading bank and now you can directly buy or sell shares online and make money. But play safe as you loose more early then you earn money.
By saying play safe i mean, invest only that much amount in the market whose lose you can bear. Never invest your entire saving in your greediness. It is the most unpredictable thing. There is no fixed theory or rules based on which one can earn money.
It is purely the study of over the time of how market has been moving during the period of time and again your luck.
When one buys a particular share on lower price and sells it on higher price then, he earns his profit or when sells higher and buys on lower price. Both way its possible. You can buy also and then sell or sell first then buy at lower rate. Its purely your choice what you want to do.
As i said share is nothing but your ownership in the company's asset. So, you do have share in the companies assets. Sometimes company does distributes its share of profit among its share holders in the form dividends. But its not necessary. Company distributes dividends yearly or half yearly.
Owing a stock doesn't mean that you have the power of making decision in the company. It just mean that if a company earns profit and as a result its stock prices go high then your stock price will also raise and you will get your part of profit on selling that stock.
By having ownership it doesn't mean that in case company goes bankrupt you will loose your personnel asset. At most you can lose that much amount that you have invested in buying the stocks of that company that you are holding.
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