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What is share market or share bazaar ?

Share bazaar or Share Market is a place where buyers and sellers are involved in trading of shares,bonds and other securities. The trading happens through exhanges like NSE(National Stock Exchange) and BSE(Bombay Stock Exchange).

What is share?

Share refers to ownership in the company, suppose I want to open a company which requires 1000 rupees but I have only 500 in my pocket so I need another 500 , so I have many options to get this 500 rupees either I should go to the bank or I should borrow money from people so in this case I will discuss the second option that is borrowing money from people.

So I will take 100 rupees each from 5 people and I will give them a piece of paper which will be written with “You are 10% holder of my company” (since 100 rupee will account for 10%) . Now I have 500 invested so clearly I am 50% owner and those people are 10% owner of the company. Now if the buisness makes profit in the next year people will demand their profit from me since they are the sharholders its responsibility of the company to pay some share of profit to them . But if the buisness face a loss in the next year and in the next year consistently then you may lose all your 100 rupees .

This was just a rough example to teach you what a share is so at the time of investing one needs to properly go through the financials of the company.

How to make money from share market?

To earn money from Stock Market you need to learn it first, there are two types of profession in stock market one is trader who buys and sells shares at the same day by monitoring various charts pattern and ther other is investor who analyse the fundamentals of the company , think about the future of that buisness and then if it seems good then buy that share.

From learning perspective various study materials are available , one of the best material I will recommend you is Varsity  . One can find all the resources to learn about stock market. Traders  can read technical analysis modules and investors can go through fundamental analysis. There are also some YouTube lectures for basics and fundamental analysis ( link ).



This post first appeared on Affiliate Marketing Complete Guide 2019, please read the originial post: here

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What is share market or share bazaar ?

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