Stock Market For Beginners...

Feeling low with insufficient salary.?? Looking for alternatives to make money.?? Wanna witness huge profits with less investment.?? Interested in short-run earning.?? Then, the perfect choice is to invest in Stock Market.. The Stock Market may also be referred as the Share market (or) Equity Market. Let us learn about the basics stock market & also what happens behind the scenes in a simple way..

STOCK MARKET :

Generally, we define "market" as a place where buying & selling of different items in a regular practice.. If the vegetables are bought & sold in a place it is known as "Vegetable Market", if the flowers are brought & sold in a place then it is known as "Flower Market." In the same way, the place where stocks are being bought (or) sold is known as "Stock Market."

WHAT DO STOCKS MEAN.??

This can be explained with an example..For example, a company-ABC wanted to extend its business in another city, now this company-ABC need some money/investment..Of course, it can approach a bank for the loan, but no one can predict the business of Company-ABC in another city..If it runs well, they can able to pay their loans, else their company has to face huge losses..So, many of the entrepreneurs will not be interested in bank loans..They estimate the value of their business and they hold some percent of the business stock/share and leave the rest to be available for an individual who can buy/maintain/sell it..

HOW TO BUY STOCKS/SHARES.??

Certain rules had been framed to buy a stock/share from a company.. The first thing is the individual who is interested to invest in the stock market should have a "Trading Account" & "DEMAT account" which means "DEMATERIALISED ACCOUNT". DEMAT account shows your physical money in the form of electronic means.. Opening of this account is very simple.. The things needed are PAN card, Aadhar card, bank statement for the last 3 months, Address proof, Income tax returns, KYC, Bank crossed Cheque & 2 color passport size photographs.. This can be done through online too.. Trading Account is provided by the stock broker where buying & selling takes place..This trading account is linked to the investor's bank account..

Now, we are ready to trade the business..But how to trade.? where to trade.? How can we analyze its profit (or) loss.??

There are many online apps like Zerodha, HDFC securities, Share Khan app, IIFL Markets, Angel Broking, ICICI direct & many more.. The above apps are the most trusted ones by its customers.. Now, select your sector in which you are going to invest based on your financial status & risk management.. As a beginner, I suggest you to invest in highly profitable & least fall sectors like banking & software.. The shares which are purchased are credited to your DEMAT account and you can sell them as per the profit ratio.. The money will be credited to DEMAT account, with an option named "Withdrawl" the amount will be directly transferred to bank account..

The profits & loss will be displayed in SENSEX which is an indicator for all the stocks that are listed in the "Bombay Stock Exchange." If a company you invested in, goes in profits then you will have a share of its profits..In the same way, with the loss too.. So, before you invest enquire about the company in its long run..Know the entire details and start investing in them..There are many things like free-float market capitalization, Sensex, Nifty, NSE, Stockbrokers, Calculation of shares, debentures, derivatives, IPO, bonds, mutual funds,etc.. will be explained in my further blogs..Till then stay tuned.. Also, share your views about the blog in the comment section below.. HAPPY INVESTING..!!!!!!

                                                                                      ---- By Mounika Perumalla