The stock market is the collection of the market of regular sellers and insurance of the shares of publicly held companies. These companies are controlled by the formal institutional exchange, which operated under a proper set of regulations. Now let us talk in a simple why about what share market or stock market is actually. Let us understand this by an example. A person wants to launch his or her company in the market, but they do not have much capital or investment to make, so they have two options that they can either take the loan from the bank corporates, or they can take the money from the market by launching there IPO. IPO stands for the initial public offering, which means that they are providing us some small part or share of their company to the public. It is a short introduction to the percentage of the Indian stock market.
HOW THE STOCK MARKET WORKS?
This market is the same as the auction house. The buyers & sellers here come and negotiate with the price or works on the ups and downs of the market. The stock marketing works on the chain or network of exchangers. Investors purchase the share and raise the fund of the company due to which the company gets the fund now. When the company grows in the market, then with the growth of the company, the price of shares also increases. Buys offer a bid of the highest amount they can pay to the seller, which is less then the seller asks for the exchange. This is called the bid-ask spread. As per the history, the stocks before were available in the physical form where the buyer and seller have handwritten paper, and they exchange with this, but as per the increase in the technology, the shares available today are in the electronic form. You can get access to the stocks on your system or mobile phone.
Now another question arises on how to invest in the stock market?
Before investing in the share market, you must confirm what type of investor you are. The broker is going to ask the first question that what is your goal to invest the money, which means that will you go with the increasing market or you will set and forget it. You must have a fixed purpose to spend the money that, after reaching this goal, I will take out the dough, whether it takes one day, one month, or a year. Now, where will the broker invest the money? So the money will be spent on different platforms as per your choice of risk you want to take. These are the following platforms where you can spend your payment or money —
- EXCHANGE TRADED FUNDS
- INDEX FUNDS
- MUTUAL FUNDS.
Now the documents and the thongs which are required to do the trading —-
There are following steps and things which are needed to do trading The first step is you require a platform where you can do trading like Zerodha, up stocks, angel broking, etc. Now you have to register or make a profile on this app using your mobile number and the PAN card. Now there will be two accounts that will be made on this app first is a dement account, and second is a trading account. In the dement account, shares that are purchased are stored, and in the trading account, the trading or buying and selling of the shared id done that’s all you require to trade now. Just search the company or corporate whose share you want to buy or sell and start trading. I hope you got some knowledge about the investment in the share market that how it works, and what are the advantages of the stock market. Another blog on the Indian stock market will tell you about how to manage your money in the share market and earn profit at a slight risk. Till then, stay curious and stay updated.