What is Share or Stock market?
Share or Stock market is a place where you can invest your money and earn a good amount of money. This market completely depends on the economy of the country, global signals, currency and political of RBI etc. In the stock market, there are shares in the names of different companies.
When a company comes out with its shares in the market for the first time, then they go for IPO (Initial Public Offer) and then the share are bought by investors, later the same investor sells those shares in the exchange and then those shares are bought by investors. Trading on share in exchange. These shares are called shares of the company.
Types of Shares-
There are mainly three types of shares:-
- Equity Share.
- Preference Share.
- DVR(Share with Differential viting rights) share.
Some rumors share market is gambling: not at all, Share market is not gambling. it is well through out market which runs on the basis of mathematics. but yes, if you do not know anything about the share market, then you can make huge losses it.
When does a loss occur in the share market?
The share market is facing losses due to factors affecting the overall performance of the finacial market. Systematic risk affects the entire market and can't be eliminated through diversification. Example: Natural calamities, political upheaval, terrorist attacks etc.
How to select a company to investing-
- Select a good sector for investing.
- Understood the business of the company.
- Read finacial data of the company.
- EPS - Earning per share.
- P/E Ratio - price earning ratio.
- Check Company's Debts
- Dividend
- Company's tornover.
- Company's Market value.
- Know the management of the company.
- Check shareholding pattern.
"To invest means to leave money now for
the purpose of getting more money in future"
- Warren Buffett.
Disclaimer :-
Before take any action read all about of share market and invest at own risk. Share market is not Gambling, Its a knowledgeable market. Read all scheme and related documents carefully.
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