What is share market?
We all might have seen that people are talking about buying share and selling it. We are fascinating that how they are earning money or loosing money in share market. What share market actually stands for.
In one line if I explain Share market or Stock market is a place where shares of companies listed on stock exchange are being traded. As shares are traded there are buyers and sellers who are trading it. Basically trading is buying and selling process of shares and those who are doing trading are known as a traders.
What is Share market for Company and Investor?
Stock market is a share market where companies are raising funds for their needs to meet their financial goals and same time it is giving opportunity to public investors to own a partnership by purchasing shares of particular company by becoming a shareholder. Shareholder can enjoy a journey of company’s growth and profit and create his own wealth by regulator investment. But if company is not doing good business or they are degrowing, shareholder must witness the loss also.
Stock market also allows investors to exit from the company if they do not want to bear further loss by selling there shares and also they can book profits after reaching certain targets they have set.
How Company enters to stock market?
As earlier mentioned companies are raising funds to achieve their financial needs through stock market. Company selling their shares for first tiome to public for raising funds is called INITIAL PUBLIC OFFERING or IPO. Company coming with an IPO need to provide information about company, its financials, who are promoters, how many shares are offered and its price band , purpose of raising fund and so many things.
How Invester enters to stock market?
Once any company is making entry through IPO listing, those who are allocated shares are either exit from company by having listing gain or loss while some may continue to be a part of journey of company by keeping their shares for longer period of time or for life time. Those who are not allocated any shares through IPO can buy shares during regular trading sessions of stock exchange and can become a shareholder of company.
To invest or trade into stock market, having a demat account is must. To open a demat account there are Stock market brokers. Once you have a demat account you can trade in share market on your phone by using digital platform provided by your broker.
Stock market or share market also allows to buy mutual funds, bonds and there is so many things to learn if you really think to enter share market and earn. So learning is a key for earning through share market.
