What is Share Market? || All stock market information in 2022

You all must know about the share market. But very few people have the right information about the Share Market. In today’s time every person wants to earn second income through some side business or any investment. Many of us invest in the stock market to get rich quickly and many under long term investment planning. But before investing in the share market, you must have a good knowledge of the stock market. Through this article, I will tell you what is the share market, how to invest in the share market and all the questions related to the share market. I will answer so that you can get started in the stock market in a right way.

Share Market Basic in 2022 / About Share Market

There are many investment options available in the market these days. But most of those investment options do not even beat inflation or stay ahead by a small margin. Investing in the same stock market gives us the option to increase our capital rapidly. But in India, the stock market is considered a road to ruin. In fact, the stock market becomes a road to ruin if you have invested just by following someone’s tip or have invested in a stock or stock without thinking. Invest in stocks after doing research.

What is Share Market in 2022

If understood in easy language, Share Market or Stock Market is called the place where shares are bought and sold. are bought and sold. These buying and selling are done through a stockbroker. Listed companies are those which are listed on a stock exchange to trade their shares.

It is not that only shares are traded in the stock market. Apart from this, bonds, mutual funds, derivative contracts are also traded in the stock market.

There are two stock exchanges operating in India at present –

NSE – National Stock Exchange

BSE – Bombay Stock Exchange

Companies listed in the share market invite the general public to buy their shares. By buying shares of any company, any person becomes owner in proportion to his share in that company.

Why do companies issue their shares to the public?

After all, you must be thinking that why does a company issue its shares to the public or why does it take out to sell in the market?

Any company needs capital to expand, grow and increase business. Instead of taking a loan, the company tries to raise the required capital by selling its shares to the public. The process through which companies issue shares for the first time is called IPO (Initial Public Offer).

What is Share ||What is stocks in 2022

After understanding what is share market, it is also necessary to know the meaning of share.

Share means “Part”. Suppose the value of XYZ Company is ₹ 1 lakh. That company issues 1 lakh shares in the market at the rate of ₹ 1.00. Now suppose you bought 5,000 shares of XYZ Company. You are now the owner of 5% Shares of that company. As the value of the company increases, the price of your shares will also increase. Poor performance of the company can also lead to a fall in the price of the shares.

You can sell your shares whenever you want through an online trading platform or through your stockbroker.

How many types of shares are there?

Shares can be divided into two parts.

(i) Equity Share – Equity Shareholders are participants in the profit and loss of the company. In addition, equity shareholders also have voting rights in the company’s AGM.

(ii) Preference Share – Preference Shareholders do not have any voting rights. Preference Shareholder receives a dividend income as profit.

How to get profit from Shares? In 2022

People invest in the shares of a company in the hope that the company’s business will grow and the company’s share price will also increase. Whenever you buy a share and after some time its price increases, then at that time you will get profit by selling that share.

Dividend is paid from time to time by the company to the equity shareholders. Sometimes bonus shares, rights shares are also issued by the company.

How does Share Market works

Most of us are intimidated by the stock market and find it very difficult to understand it. But when you gradually start expanding your knowledge, then your knowledge of the stock market will increase. and act as an intermediary or intermediary between the exchange. As an investor, we place Buy or Sell orders through our stockbroker.

Stockbroker sends our order to the exchange.

Exchange looks for us as buyer or seller .

The exchange then confirms the order to the stockbroker.

By this our order is completed and money is exchanged between buyer and seller.

How to invest in Share Market in 2022

Now the next question comes that how to invest in share market? There are two ways to invest in the stock market, one direct and the other in direct. Direct investment is made in the share market, such as buying shares of a company. To invest in the stock market, you need to have a demat and trading account.

You can open a demat account through any online broker or bank. I would suggest you to open a demat account with online discount broker as their online support is very good and brokerage and AMC charges are very less as compared to full service brokers.

For demat account you need following documents Required –

PAN Card

Bank Account

Address Proof

A Cancelled Cheque/Bank Passbook Copy

One or Two Passport Size Photographs

For Demat Account Opening After that you can transfer money from your bank account to trading account with the help of online banking. You can then buy shares from your broker’s online terminal or with the help of the broker.

After selling the shares, you can transfer your money back to your bank account as well.

Conclusion (What is Stock Market)

Friends, the stock market is a good way to make passive income. But wherever it comes to earning money from money, the risk is also very high. Also, you have to take some time to understand the stock market. If you want to invest in the stock market without giving research and time, then perhaps the share market is not for you.

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