People can buy and sell company shares in the stock market. Buying stock gives you the right to a small portion of a business. If the business is successful the value of your shares may increase, and you may be able to sell them for a good profit. If the company performs poorly its value may fall and you may lose money. The goal of investing in the stock market is to increase one’s wealth over time.
If you want to go into the stock market, what should you do first?
There are many people who have zero knowledge of the stock market, they do not even know what the stock market is.
Sometimes we have heard that the market went up, the market went down, people made profits, people suffered losses, but how does it work, how to invest in it, how to trade in it?
So in this article we are going to give Basic to Advance Knowledge. Those who want to learn about the stock market from today, want to learn to grow money step by step,
This article is very important for those people, you guys must read this article till the end! Today in this article you will also understand the ABCD of the stock market.
Stock Market is understood that there is a market, a market of stocks, which some people also call the stock market, some people also call it equity market.
What is stock? The simple meaning of stock is the stake in a company.
If you have a stock or share of a company! Share means ownership. You become a small owner of a company but you do not become the owner of the entire company. You have only a small part of it. The one who has more shares in the company will be called the owner of the company! Suppose there is a sweet shop private limited company, now this private limited company needs money because what do they have to do now
Suppose you will open 100 more shops, now you need money for that, so what will you do to get the money, you will go to the exchange, exchange means we will give our company’s share and in exchange of share we need money, so this private limited company also had shares, now they also want to exchange shares in exchange of money, that give us money, we will give the share, now who will give this money, public, now there are different people in the public also, you will say public, then there are people like you and me, basically there are people like you and me, if we say public, then you and I will come in the public participation in it, in retail, retail category which sells shares, then there is another category which we call HNI category
The one who wants to do business needs money, so there are many ways to get money, you will say that he could have also taken a loan, definitely Le sakta tha, one way is this loan only And there is another way to raise money in exchange of share market. When we raise money for the first time in exchange of share market from public, then we call it IPO which we know as initial public offering.
Like there is a company (LIC), what does it do now? It also invests a lot in stock market because it has a lot of money from public. Big banks also invest. There are big funds, Mutual Funds which invest. So what happens is that these become institutional buyers. We can also call it (QIB) (Qualified Institutional Buyer’s). So you people can understand that the money that will come will come from public only.
But public has three faces! There is a retailer participation. You
and I and many people like us have an HN (High Individual Network) and qualified institutional buyer has come. It is good. You people are able to understand this much. For this process, there is an exchange in India. Like any share market will be listed on an exchange. The name of that exchange is NSE (National Stock Exchange) & BSE, Mumbai Stock Exchange. These are the two stock exchanges in India.
If a Lalji was running a shop, let’s say he was running a shop for the last 45 years. Now he felt that I have become very famous but I need money. Today I have 10 shops but I want to open 50 or 100 shops and it will require a lot of money and I have to open them on my own. So he could have taken the money by taking a loan or he could have taken it in exchange of shares. Now he sold a stake in his company and sold some percentage of shares to the public. Now that share has come to the public. If he keeps selling the shares continuously and they keep coming to the people, then people You will become the owner
You will say how can this happen? This is exactly what can happen.
If this Lalji sells all his shares or sells majority shares, then he will no longer be the owner of this company. Someone else will become the owner of the company who has those shares. So the owner of the company is always the one who has shares.
Mukesh Ambani, you can say, is the owner of Reliance company because even today he has major stake holding. The one who has more shares will be the owner. If his shares are diluted, he will not be the owner of the company. It is important for you people to understand this.
Share means ownership. Suppose if you are the owner, then what benefit will the owner get? If the company becomes worth crores, then the valuation of the company will increase.
Now you will say what is valuation? What is this market cap? Let us assume that this company of Lalji had one lakh share market, as we just said, Sweet Shop Private Limited Company
Has 1 lakh share market, now when Lalji released IPO, for example one share was of ₹ 100, then you would say that the market cap of the company has become one crore rupees.But how will the value of this company increase if its share price increases? Share price depends on many factors but the most important thing depends on how much the business is growing and how far it is moving ahead.
In the long term, the share price of the company may get affected due to some news or due to many external factors but ultimately if you follow the graph of the stock of the company, then if the graph of the company’s earnings is going up, then the price will also go up and if the earnings are falling then the stock price will fall. In the short term, definitely you can say that there can be a difference in the price of the stock of the company.
I just want to tell you that in the short term, it may happen that due to some news or due to any hype of the media in the market or any such thing happened with the company which affects the stock price for the short term but in the long term, if you follow the stock price of the company and see its earnings graph, then the graph will start going upwards.
So you Why do people want to invest in the stock market? Have you been influenced by someone?
You should not take investment decisions by being influenced by someone. You should always take investment decisions according to yourself. People get influenced and say that so and so people have invested money in this stock because people are doing this. If you also start doing the same, then a big scam can happen with you and it is happening with many people. I want to tell you how you should take the first step in the stock market.
What is happening nowadays, you will see that you people get messages from some unknown number. There are many such Telegram groups in which you will be shown that brother, we will give you trading tips and you will make a lot of money. These people are a big fraud. They are not SEBI registered professionals. They are not registered advisors. They are cheating you. How are they doing it? I would like to explain to you.
First of all, let’s talk about SMS! You can send a simple SMS to people’s mobile like these people have got 10 lakh data, you will say that the data of 10 lakh people, many people go to such a website where they put their phone number, from there these people take out your number from there
And these people create different groups and after that they start giving advice
Like today Bank Nifty will go up, people of the second group were told that today Bank Nifty will go down, he will tell you people to buy CE at such and such price, they drafted the message and followed it
Now the message came to the people of this group, these people bought it, they will benefit if the PE market falls, but today the market did not go down, so these people lost money
And he will tell the people of the other group to buy it today, they will benefit if the market goes up, but today the market went up and these people benefited and the people of this group will say that the message that came was very good
Now he will tell the people of these groups to join our paid group Do it on Telegram, many people will join it and will also give money and nothing will happen because tell you guys one thing, if someone generally knows whether the market will go up or down, he will become God.
The market depends on many dynamics. And Warren Buffet clearly says that the stock market is a tool, it takes money from people with passion and gives money to people with passion.
Young people do not have passion, they are unpassionate.
So money will be taken from them and money will be given to people with passion.And you must have heard from many people that we invested money in the stock market and we suffered a loss. Let me tell you one thing that the stock market does not keep money in its pocket. There is a buyer in the stock market and there is a seller. If the buyer suffers a loss, the seller will benefit. If the seller suffers a loss, the buyer will benefit.
Now we will move forward from here step by step!
Step 1:- The first mistake people make is that they start buying stocks as soon as they hear the name of the stock market. You people should not do this.
If you want to learn to play cricket, then you have to go to the ground and practice.
This means that if you want to enter the stock market in reality, then first you have to invest because investing in stocks is a good thing but you need quick money. Someone had invested money in a false company and his money increased 10 times. In a hurry, they invest money in pani stocks and then what happens, they lose money. You people should be interested in whether to invest money in the stock market or not.
Step 2:- You people should do index investment in the beginning. Now you people will say what is this index investment.
Like Bank Nifty is an index, in the same way there is an index called Nifty and what is Nifty? Nifty India’s top 50 companies come under it, which we call Nifty 50, so an index is formed by combining them.
Step 3:-Mutual Fund:-mutual funds There are many types of them. There are debt mutual funds, there are hybrid mutual funds, you will get international funds, small cap, large cap, you will get confused in starting your trading Don’t focus, first learn the stock market, become a little mature, only then start investing in the stock market and slowly start trading as well
Conclusion:- In this article, information about the stock market has been given. What have you learned by reading this article, please tell us by commenting. Thank you