Stock Market – Hello friends, welcome in another new valuable article where we are going to know how Share & Stock Market is done.
Basically friends, today we will cover 3 points in detail :-
What is Share Market?
What is Share Market & How it work?
Basic Things Need to Start Trading in Stock Market
What is Share?
Friends, to start or grow any business, capital is needed, that too a lot of money, for which small parts of the company are made, from which we call Share and they are sold to the public for example suppose there is a businessman mr.x they have a company ABC whose value is 50 lakhs and they want to grow their business for which they need 40 lakhs more but Mr.X doesn’t have that much money so he can start his own business. 40 lakh shares of the company will be issued in the market with a face value of ₹ 10 per share.
Friends face value company has to divide before issue of share which is generally ₹ 10, now public will buy shares of mr.x ABC company and mr.x will get 40 lakh rupees for growth of business and which are shareholders, they will get the company’s stake! But how will the shareholders who are in it benefit! Did they have to read the whole post to know about the company’s profit to them.
First we know that share market is done
Share Market – Trading
Friends, if you have to buy something, then you go to the market, as there are markets for buying and selling of shares, in earlier times when the Internet was not used as much, then the buying and selling of shares was physically options and all . But in today’s time, when the use of internet has started, then this whole system has become online, you can buy and sell sitting at home.
Friends are the most popular 2 stocks from the market :-
- NSE – National Stock Exchange
- BSE – Bombay Stock Exchange
Friends, this is the most popular stock which has the most buying & selling shares and apart from this, there are many other markets like Kolakata Stock Exchange but the most popular stock market is NSE & BSE, friends, all the companies issue their shares. So he first has to get himself registered in these markets first. And if we talk about NSE, then 1700 company is registered in it, despite having a look at BSE, 5400 companies are registered in it as compared to NSE which means more companies are registered in BSE than NSE.
Friends, the shares which are offered in NSE, we call them NIFTY.
And the answers that are offered in BSE, we are called SENSEX, you must have heard about it, friends, all have issued guidelines on the basis of those guidelines, the investments that are made and the trading of shares are in these markets.
How Share Markets Work?
A particular company first they register in Bombay Stock Exchange (BSE) and those who are Financial Brokers also work in it like an employee because they get commission for working in it.
Friends who are Financial Brokers, who are public, who do not have knowledge of shares and stocks, which company should invest in and which company should not invest, then they give advice to the public and then buy more. They also do the work of Selling and in return they take commission from you, friends who are most of the people who start stock trading, then they take the help of Financial Broker because they do not have much knowledge about the stock. There is a better option to take help from a financial broker.
Friends suppose that a MR. B is those who do not have much knowledge about share or stock, then they will contact Financial Broker to buy shares, then the one who is Financial Broker will contact MR.C to buy their shares, if MR.C to sell his shares If interested, he will contact the Financial Broker to sell his shares, then if he has the same requirements as the Financial Broker of MR.B, then he will contact him to buy the shares of MR.C. Further, MR.B would have had knowledge of how the share markets work, so he would have bought shares by contacting MR.C directly and did not even have to pay commision to the Financial Broker. #This is How Share Markers Work#
So now let’s talk about friendship, how those who are share holders earn profit.
How Share Holders Earn Profits – Stock Market
Friends, if a person buys shares of a company, then there is no happiness limit in it, that person can start with a small amount like he can start with ₹ 500 and can also invest with lakhs of crores of rupees. So according to this, the ownership write and other holding rights (there are different types of rights) are available to the same shareholders (according to the proposition of their shares), so let me explain by giving you an example :-
A person a small part of a company how he earns profit from it
Let’s take an example of Company ABC…
It’s Face Value is ₹ 10, and it issue 4lakh shares * ₹10 per share = ₹40lakh
And MR.B a person who bought it 1000 share * ₹10 = ₹ 10000
And suppose Company earn a good profit in upcoming month’s because of this market face value will increase, as earlier it’s markets face value was ₹ 10 then it will turn in ₹ 11 or maybe higher.
MR.B holding profit will be
If he wants to sell his shares on price ₹11 then 1000 shares * ₹11 = ₹ 11000 means his profit will be ₹ 1000 #This is How a Share Holders Make Profit from Share Holding#