What is Stock Market and How the Stock Market Works

Share means you have a stock of a company, then you become the owner that company as you have stocks. By buying shares from the stock exchange, you can also become the owner of any company listed here.

To start any company, a lot of capital is required. It is very difficult that one person can put such a huge capital in his company. But if he is divided the capital into small shares, Many people can buy a stake in that company and become the owner of that company. Any person can buy shares in accordance with their capacity to own as much as the company’s share. It is as much as its capacity.

It is necessary for any person to easily purchase shares of a company, that the company is listed on some or all of the stock exchanges. Once a company is listed on a stock exchange, the shares of that company start trading in the exchange. For this, companies come with IPO. After the listing, the shareholder of that company can sell their shares on that stock exchange and the person interested in buying that stock can buy the stock from the same stock exchange. When a company’s stock is readily available for sale or purchase, it is called liquidity or liquidity of the shares of the company. The actual market value of any stock can be higher or lower than its face value. And this price depends on the demand and supply of shares. This is the general rule of the stock market that if the share price is high, its value increases and if the share is not demanded, then the share price decreases.

The person or group of individuals planning to start a company is called a promoter. The promoter holds one share in those shares and the rest is offered to the public. The part that the promoters have usually does not come to be traded in the stock market. The share market is the share of the same trade which is held by the public.

Generally, the investor in the shares is called an investor, but many people work in day trading. According to me, the real investor is there, after buying the stock, keep it with him for a minimum of three years.

After trading or buying a stock in Day Trading, the deal is refunded the same day. That is, if a De-trader thinks that the stock of Reliance Industries is going to increase today, it starts buying at the beginning of the trading and if he sells it back before the market closes, then he will call Day Trading.

According to me, Day Trading is a very dangerous sport and it is gambling in a way so most of the investors should stay away from it. It may be that when you open your trading account with a broker or bank, the staff there invite you for de trading. Understand this, the number of times you trade, the broker will get your brokerage.

It is not necessary that you are profitable in every transaction, so whenever you invest, invest only by thinking about the long term and trust your decision. Frequent switching of shares is not beneficial. Be sure to assess your portfolio every three to six months.

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