There are 2 types of market in the industry. Money market and Capital market. Money market deals with short term securities like commercial paper, commercial bills etc. Capital market, deals with long term securities like shares, debentures etc. Capital market is further divided into primary and secondary market. Primary market is where new long term securities are traded while secondary market is where the already traded long term securities are dealt with.
Share market or stock market as people call it, comes under the capital market. Share market is also called equity market. Share market refers to the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses.
How much can you invest in share market?
You do not need to have thousands or lakhs of rupees to trade in the share market. You can invest as low as 100 rupees. No minimum amount is required to trade in securities in the share market.
Which shares to buy?
This is the most difficult question to answer. Even an expert does not know which stock’s value is going to rise or fall at a particular point of time. All the earnings are basically based on a speculation. So, invest huge amounts tin shares only if you know that you trust your gut and you have thorough knowledge about the share market and how it works.
How to know the share price?
The share prices are revealed in India by the stock exchanges. So, if you want to know about the share price of today, you need to check the Sensex or Nifty, which are the index released by the Bombay stock exchange and the National stock exchange of our country on a timely basis.
Share market ups and downs
Share markets face a change in their value due to a variety of factors. These changes may be national or even international. Recently, as per CNN, “The inauguration of President Joe Biden and expectations for more government stimulus, in addition to a so far successful earnings season, pushed the market higher. This was an example of international change that resulted in change in the share market prices. The change may also be national like government related, technology related or economy related changes
The stock market is an excellent way to gain wealth over a long course of time. If you can weather the downturns, stocks historically have offered good returns. Stocks lost half their value during the Great Recession that started in December 2007. The market lost about 90% of its value, in the early years of the Great Depression.
So, the losses as well as the profits both are high in the share market. If you have a weak heart, the share market is not for you. But, if you are willing to take risk for higher returns, the share market is just the right place for you.