Share Market Basics includes information related to Share Market as well as company share basics and Share Trade basics.
If you are here it means you want to know what is share market and how to trade there. Along with all the basics like:
What is a Demat Account and how to get the Demat account?
What is Share Market:
A share Market is a place where the trade of shares takes place. Understand the share market separately.
Share:- The part of ownership in a company or organization Like – If if purchase a share of the company it menace you are buying ownership in the company.
Market:- Place of trade. where people go to buy and sale and things
Share Market:- Place to buy and sale of Share. It’s the Place where big stock exchange work in which companies enlist their shares.
You can purchase shares from these stock exchanges just you need to have a Demat account. A Demat account is an account where transactions of sale and purchase of shares are recorded.
To start your trading journey you just need a Demat account and a trading account
There are two types of markets available for customers.
1- Primary Market
2- Secondary Market
Primary Market:
This is the market where the company issues its share for the first time to raise capital from the market.
It’s the first time when company shares get listed commonly we know it as an IPO. As a result, the primary market is also known as the listing market.
In the primary market company issues an IPO and the consumer bid for the IPO. After the bid process, some consumers get the IPO others who failed to succeed in a bid get their money return back now they can purchase these shares in the secondary market.
Secondary Market:
This is the market where you can sell your IPO or other shares you have. there anyone who has a Demat account can purchase shares according to his choice.
It is the market where large as well as small investor invest their money. share investment is the best way to target inflation.
we know to fight inflation you need to earn more money according to time Like if you have 1 lakh today it won’t have a similar value after 10 years.
But if you invest it in the right share you will get the valuable amount after 10 years.
There are various facilities available in the secondary market like-
1- Intraday Trading
2- Delivery Trading
3- Future and Options Trading
4- Commodity Trading
All can be done with just a simple Trading Demat account
Here I want to clear the stock market is similar to the share market in the stock market you can purchase financial instruments like-
- Bond
- Mutual Fund
- Derivatives
- Shares of companies
Where the share market allows only the trade of shares.
Let’s know the Indian prime stock exchange:
1- BSE – Bombay Stock Exchange
2- NSE – National Stock Exchange
You can buy only those company shares that are listed on these exchanges.
How to Invest in Share Market
The basic step to investing in the market is open a trading account and a Demat account. Your trading and Demat account will be linked to your saving account.
To facilitate your easy transfer of money that will help you trade easily.
Now you may want to know how to do online trade in real time.
Follow the following steps to do your first trade-
Online trading steps-
Step1 – Login to your trading account with the ID and password you get while opening the trading account
Step 2- Make a list of stocks you want to trade in. You can give a list of names according to your choice.
Step 3- Select the stock you want to trade for example I have selected Coalindia.
Step 4- Press the Buy tab if you want to buy.
Select the stock carefully as the stock market is subject to risk and you can loos your hard-earned money.
There you will get two options intraday trade or delivery trade if you want to invest for the long term then select the delivery option.
If you want to do day trading select the intraday option.
You can see the image where delivery shows long-term and intraday shows day trading.
Select the order type Like you want to buy at market price or you want to set a limit. If you want your share instantly on market price select market tab.
If you want to purchase at your target price select the limit option and submit the price on which you want to buy.
As the share price will reach the submitted limit price your share will get automatically purchased.
Conclusion:
Share Market is a wast subject you can not become successful trader jut in one day. but you can start your journey with these share market basics.
