What Is Share Market?
The share market, aka stock market, has been a pretty common topic for over a decade now, and you must have heard of it too. This market is popular among investors who tend to buy and sell shares of companies.
In short, the stock market is a great way to create wealth over time, and investors rely on it for a greater benefit. You can also say that it is a set of exchanges where companies issue shares and other securities to trade.
So, now that you’re known the definition of a share market, you should jump to the procedure and how it actually works. If you are someone who does not know how the stock market works, you’ve arrived at the right place.
But, before we break the ground, we would like to discuss Sensex and nifty and give you a small idea about these!
Definition Of Sensex And Nifty
To discuss nifty and Sensex, we have to mention precisely in India, there are two stock exchanges. One is the Bombay Stock Exchange, and another is the National Stock Exchange. Each of these stock exchanges should have an index to measure the performance of the share market. So now you know why these two are essential, and we have mentioned them here.
Nifty is the Index for National Stock Exchange (NSE), whereas Sensex is the Bombay Stock Exchange (BSE) index. Or you may also say the actual Sensex meaning is the benchmark index of the BSE in India, launched on January 1, 1986.
Now, you must know the three different and most important terms for the share market…
Stock Exchanges, Stock Markets & Stock Indexes
Since we are discussing the online trading share market, we have to mention the important factors too. There are three different terms here, and most people misunderstand the meaning of these. First, a stock market mainly refers to the facilitation as well as the process of investors buying and selling stocks with one another. So, you can say that the stock market is an intermediary connecting buyer with sellers. Hence, a stock index is nothing but a numerical representation of a group of stocks that are being used to track their collective performance. Moreover, you will get a share market holidays list on the internet, do not forget to keep an eye on it too.
How Does Share Market Work?
To start with the share market…
- A company must get listed in the primary market through an IPO.
- Once the company is listed, the shares will get distributed in the secondary market.
- After that, the stock issues in the market can be traded by any investor present in the secondary market.
- The stock brokers and brokerage firms will be registered with the stock exchange and offer you to buy a particular share at a given price.
- Your broker will pass your buy order to the exchange and search for a sell order for the same share.
- This entire process will take T+2 days. However, your shares will be deposited in your account within two days.
People say the share market is one of the biggest avenues for investment. However, it is often considered a gamble. You can be benefitted from the share market if you know the basics of the market. Companies usually make the shares available in the secondary market to grow their business. Also, the basis PB ratio in the share market might increase with time.
Let’s now discuss another most important thing related to the share market.
Online Trading Share Market
Have you ever thought of the Online trading share market? Since we tend to do most things online nowadays, why not online trading? In fact, online trading is one of the most convenient ways to trade in the share market.
We would like to share some benefits of online trading here.
- Most convenient way
As mentioned earlier, you can easily buy or sell shares from a completely remote location. Eventually, you will see it saves a lot of time and is the best. When you choose online trading, the brokerage fee changes will be lower compared to the commission charged by a traditional full-service broker.
- Monitor investment from the comfort of your home
Well, online trading offers advanced interfaces, and you will even get the option for investors to watch how their money is performing. You can check it throughout the day. You can simply access the platform through your phone or PC and evaluate your loss or profit.
- Enjoy instantaneous transactions
When you choose online trading, you will be able to review all your options instead of depending on the broker solely. The broker might tell you the best, but choosing yourself the best value is surely better. Also, you can easily transfer funds instantly, especially if the two accounts are held at the same bank.
The stock market or share market is something you need to understand first and get deep into it. On the other hand, if you understand the basics pretty well, you can be a gainer. The Monday share market prediction keeps changing, so you must keep yourself updated.