Friends, you must have heard the name share market or the stock market. We all want to open a stock market account. I also earn money by investing. But you do not have share market full information, then you can never invest in the share market stock market
For those who don’t know share market full information, this post is for you. You can learn a lot from this post of mine. Example – what is the stock market? what is exchange actually? where does our money go and where does it come from? Where can I create an account? etc.
What is Share?
Any big company needs a lot of money to grow or grow. In such a situation, the company is not able to raise money. In that situation, the company owner is forced to divide the company into smaller branches. That system is called a share. You can easily understand from the example below.
For example, let’s say a businessman whose name is x. That person has a big company called ABC. The current value of this ABC company is Rs 50 lakh. The owner of the company wants to grow this company. And for this, he needs another 40 lakh rupees.
The company does not have this extra money at the moment. Then the company issues 4 lakh shares in the market with 10 / phase value. That phase value has to be divided before issuing shares. This phase value is generally 10 / share.
If the public buys shares of ABC Company, the company will get Rs 40 lakh. And shareholder becomes a company’s share partner. What is the benefit of all shareholders? I will discuss it a little below. Before that, you need to know what is the stock market?
About Share Market
Friends, when we need to buy something, we go to the market. There is also a specific market for share purchases. In the past, when there was no computer or internet, share trading was done physically. But today all these systems have gone online.
Now we can buy and sell shares at home. Now there are many popular markets, such as the Calcutta Stock Exchange, which buy and sell shares. But at present NSE and BSE are the most popular. All the companies that issue shares have to register in all these markets.
Get Share Market Full Information by Some Question
When we step into the share market, many questions arise in our minds. This is normal, everything needs to be verified before embarking on a big task. If not verified, you are in great danger. To avoid that danger, follow the points below.
Is The Share Market Risky?
When you buy shares of a company, you are buying a small partnership with that company. You are about to become the co-owner of that company. The more you will be clear, see the example below.
Suppose you invested money in a friend’s business. If there is a loss in that business, your money will go to waste. There is this risk, In the same way, you are being employed in big business in the share market.
Suppose you are in a big company, For example, Tata, Reliance, Godrej bought shares of the company. If this company makes a loss, you will also make a loss. Again if that company makes a lot of profit, you can make a profit too.
There are many companies, could not grow. Again many companies have grown much more. For example, Eicher Motor Company has increased the sales of bullet bikes in the last seven or eight years. And because of this, the company’s share has multiplied.
Then you understand that there is a risk. That is why the return is much higher. My post, share market full information for how to stay away from this risk or reduce it.
How Much Return is Available From the Share Market?
It is not clear how much money can be returned from the share market. If you invest, who can tell you how much money you will make next year? It can be 10% and it can be 30%, that is not correct. As the company makes a profit, so will you.
If you search, you will find that many companies have not been able to grow a single penny in the last 4 or 5 years. In addition, the growth of the company has been down. There are many companies that make four to five times profit in one year.
This is the discus of a share. When you invest in share markets, I would recommend you invest in 8 to 10 companies. Because even if 1 or 2 companies go bankrupt, not all of your money will go bankrupt. If you invest in the right way, you can get up to 30% return in 5 years from the rest of the company.
Watch the video below to learn more about the right way to go.
How Much Money Can be Invested in the Share Market?
Now with an interesting point, how much money will you start the stock market with? How much money you want to start a business depends on which share you are associated with.
For example, suppose you are investing 1000 rupees per month. Invest this 1000 rupees, increasing it by 15% every year. That means you are investing 1000 rupees per month, so you are investing 12000(1000×12) rupees per year.
This is the 1st year, the second year you invest 1150 (15% extra) per month. So it turns out that in the second year your amount is 13800 (1150 × 12) rupees. Thus after investing for 25 years, your amount will stand at Rs 1 crore.
Process
Now let me tell you how easy it is to get started. That is, if I want to do business, what is the process? The answer is, the process is very straightforward. The documents required for processing are Pan Card, Aadhaar Card, and Bank Account. Don’t have these? Make it.
Now all the processing work is done online. Now there are many online discount brokers, such as- can take the help of Zerodha. For this, you need to open the Zerodha account by clicking here.
Within 3 to 4 days, you can open an account without any physical paper. With the help of Zerodha, you can start trading online by opening an account for 300 rupees. And brokerage is very low, if you buy shares and sell a day or two later, you do not have to pay any commission.
However, a small government access fee has to be paid, which is very low(Less than 0.1%). Very straightforward for entrepreneurs, open an account, and start investing after 4 days.
Why Stock Market Has a Bad Name?
Share Market is so good, why is it notorious, or why everyone is afraid? Let give you a small example, When someone buys a property, does he think that after 4 months his property will be doubled. Then he will benefit from selling that property.
By the example above, I mean that it takes time for something to grow, not that it grows overnight. But suppose your friend told you to come to the share market. Your friend will also say that he has either earned Rs 4,000 in one night or his money has doubled.
But you know, double the money overnight in the lottery or gambling alone. Heard that friend and you went to the share market. You went ahead without share market full information. You have never checked the details of the company you are going to buy shares from.
As a result, if the company closes, you will have a loss. Your money went to waste in the hope of extra profit. And the share market is being discredited by people who have fallen into excessive lust. So before you say share market full information then invest. That will match your success.
Why Share Market Prices Go Up And Down?
Many of you are wondering why the share market prices go up and down? Why is the company associated with the share market? Or when to get up and when to get down? I will clear all these doubts about yours.
If you start a business, the first thing you need is capital or money. If you need a little more money, you don’t have it. Then you either borrow money from your friend or any of your relatives.
It takes more money, borrows from the bank. But suppose you need 20 crore rupees which no one can give you, then what will you do? The public will pay this money but why the public pay?
Of course, the public will pay, because if you show your company’s features and if your company gives a partnership. This means that you will make your company a partner and he will invest money in your business. The same is called share business.
The person who bought the share with money, if he needs money after two days, then what will he do? The company has spent the money, meaning the company will not return the money.
In such a situation, the only way open to that person is to resell that share. But where to sell this? Who will buy his share? There is a share market or stock market to buy this share.
Where do I Learn About Stock Market?
Where will you get or learn to share market full information? For this, I can help you a little so that you can get share market full information. I will look for some books and courses that will help you a lot.
- Best Book on Share Market
- INVESTONOMY
- RICH DAD
- LEARN to Earn by Peter Lynch
- THE EDUCATION OF VALUE INVESTOR by Guy Spier
You can see the video tutorial on the above questions given below.
Share Market Related Words
Let me give you an idea about some important words related to the sharing market. Before entering the share market, you must know about these. Otherwise, you will have to read a lot of difficulties or curiosity will remain in your mind.
What is IPO?
If we also need to invest our company in the stock market, we can invest. The same is called the IPO or initial public offering. Our company is never listed on the stock market. Our company offers to be listed on the stock market, the same as Initial Public Offering.
But if you want to list any person or company, it is not so straightforward. It is necessary to go through a few steps, then it is possible. For this, you have to go to SEBI. Let’s see what is SEBI?
What is SEBI?
If you want to list a company, you first need to create a document, called Red Herring Prospectus(RHP). The document has to be taken to SEBI. According to RHP, the details of the company have to be submitted to SEBI.
- The details, that need to be submitted are —–
- Company age,
- How many founders
- Educational Qualifications
- Share Where to use
After submitting the above RHP document to SEBI, SEBI will verify it. If SEBI thinks that the company has qualifications, then it gives him approval. Not that you applied and SEBI will approve you immediately. You may have to wait six months or two years to get approval.
What is NSE & BSE?
The full form of the NRE is the National Stock Exchange. 1700 companies are listed under NRE. BSE whose full term is the Bombay Stock Exchange. Under which there are 5400 companies listed.
CONCLUSION
Lastly, if my post helps you, don’t forget to comment. I will tell you to subscribe to my site with your email. And if it doesn’t feel good or helpful, I apologize. You will find many more such helpful sites on Google, you can visit them. I wouldn’t say start your business after reading this post of mine. Do more research and share market full information.
