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what is stock market and how it works
Introduction to stock market
Every one tells that stock market is a complicated thing and tell that investors will lost money in it but the truth is that every one can do it
Each time the only thing we care about is the investors alone ,making profit, growth of wealth and over come loss ,but the stock market is not all about this ,their are stocks where the companies has to list ,brokers who has to work as a medium ,they are these Soule of this trade
Stock market participants
* Public listed companies.
* Stock brokers.
* Investors.
* SEBI.
* Clearing house transfer settlement.
What is stock market ?[definition]
Stock market is a place where shares of publicly listed companies are traded
There are two stock market in India.
1) National Stock Exchange[NSE]
2) Bombay Stock Exchange[BSE]
Publicly listed companies
The valuation of a Business is divided into small units, these units are called share or units
Stock market; Business valuation = No of stocks *value of each shares
Why do companies becomes publicly listed
IPO: Initial public Offering ,it is a very complicated process to list companies in stock market which people can give and take stocks
There are only stock market in India NSE and BSE there are 5000 companies in India which had become publicly listed through BSE and16000 through NSE
Investors
Definitely to make money, we buy a share of a company and sell it when the share is at a demand, that way you can make profit also to get a dividend of profit from the company
How do you select a company for investing
1) Fundamental analysis
2) Technical analysis
How are stock price determined and why do stock price keep fluctuating
In order to understand this we need to know Supply Demand, Example if a company has a fixed number of stocks and investors buy the stocks and their is a sudden increase of price in the number of stocks the stock holders sells the stocks and earn wealth
Factors deciding stoke price
1) Comparing performance
2) Market sentiments
LTP : Last Traded Price
Each and every time the investors are selling the the stock which shows the graph of a particular stock that's its LTP
Every thing about stock brokers
Authorized partners of the stock market are known as the stock brokers brokers facilitate to connect the investors there are so many brokers available in online today some of them are up stockx, Zerodha Kite app, Groww trading app, Angel Broking mobile app, paisa trading app
Every info can be get through apps like this , LTP, graph, etc.
How can investors buy a stock
There comes the importance of a Trading and Demat account
Demat account means de-martialized account which shows that you owns a particular share, in order to store your digital share we need a Demat account without a Demat account we cannot store or buy stocks
Trading account is whew you store the digitally accepted stocks through the trading account you can buy and trade stocks, we transfer money from savings account to Trading account for investing
Other participants
Cleaving house : they ensure the money transfer between investors and broker
Transfer agents ; They register and maintain details of the investors.
Depositary : depositary owns the Demat account two main depositary in India Central Depositary Service limited [CDSL],National Security Depository Limited [NSDL]
SEBI : Securities and Exchange Board of India
Its a Government wing ,stock market is a place where money involves and a great possibility of scam , so regulation is very important ,SEBI observes and make sure that nothing fraud is going on, the market is growing, the investors are protected
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