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What is Equity market or share market? How it works?
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17 January, 2017, 3:17 PM
1st of all as you know that we invest in different-different sectors to earn for future since many years.
Why we invest?
We invest because nobody knows about the future of our life. We invest for our old age; we invest for our child’s future.
Where can you invest your hard money?
For investment, people invest in Gold, Properties, Bonds, Fixed deposit in banks, Mutual funds, share market etc. The purpose of the investment is same- to earn money from our hard money.
Today we will tell you about share market….
A share market is a place where you can trade in companies’ shares Like Wipro, ITC, ONGC etc.
There are so many exchanges in this world. New York Stock Exchange, United States is the biggest stock exchange in the world. In India, there are mainly two exchanges for trading in share market NSE (Nation Stock Exchange) and BSE (Bombay Stock Exchange).
In share market there are two types of market:
1. Primary market
2. Secondary market
In the primary market, the company gets registered to issue a certain amount of shares and raises the money. When a company sells their shares is called IPO (Initial Public Offering).
In the secondary market, after selling in the primary market, these shares are ready to trade in the secondary market. This platform is also offering you to buy or sell the companies’ shares like the primary market. Here you can invest for short term or long term.
How to buy/sell shares?
First, you have to open a trading and Demat account with a registered broker. You can trade online or offline through your broker. They will provide a unique id and password. Then you have to pay the amount for trading. You can buy/sell shares as per your fund. Suppose you bought shares for short term periods and after sometimes if company performed well then prices of the shares will advance then shares will rise in that case you will gain (vice-versa). You can sell those shares at a higher level. You can book full profit or partial it’s up to you.
Share market is regulatory by SEBI. If anyone will try to speculation SEBI will take action on that.
If you don’t know the answer to these questions join NIFM- A complete solution for share market courses.
Call NIFM- 9910300590, www.nifm.in
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