“You can earn lakhs of rupees every month by learning and understanding the stock market.”
The share market is a place where people buy and sell shares of companies. Investors do this to earn profit. Although you can earn good money here, there is also a risk of loss. So, before investing, it is important to learn and understand how it works.
Do you want to know about the stock market in Hindi? These days, many people are discussing how to earn more money by investing less in the stock market. You might have also heard about it and now want to start investing in the stock market.
In this case, the most important thing is that you understand everything properly before investing your hard-earned money anywhere. Here, you will get all the basic necessary information related to the share market. So, before putting your money into the stock market, it’s important to learn about it first. In today’s article, we will give you simple and clear details about the share market or stock market.
What is Share Market?
The share market is a place on earth where people buy and sell company shares. It works like a platform where investors can trade these shares. A share means a small part ownership or part of a company.
In the share market, only the shares of companies listed on the stock exchange are bought and sold. The prices of these shares keep going up and down for various reasons. To earn money from the stock market, you need to buy shares at a low price and sell them at a higher price. But before doing this, it’s important to learn and understand how the share market works.
The share market is a place where people buy and sell company shares, mutual funds, debentures, and other financial products.
India has two main stock markets – the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Both of these markets are regulated by SEBI, which is the Securities and Exchange Board of India.
How does a company issue its shares?
A company needs money to grow its business. To raise this money, it offers some of its ownership (called shares) to the public.
The company lists its shares on the stock exchange through an IPO (Initial Public Offering), sets a price for them, and then sells those shares to investors.
How does the share price change?
When a company first sells its shares through an IPO, it sets a fixed price. But after that, the price of the share keeps changing based on demand and supply.
If more people want to buy the share, the price goes up. If more people want to sell the share, the price goes down.
How to know about a company’s shares?
To find out how a company’s shares are doing, you should regularly check the Sensex and Nifty.
Sensex shows the average performance of the top 30 companies on the Bombay Stock Exchange, and Nifty shows the performance of the top 50 companies on the National Stock Exchange in India.
When is the right time to buy shares in the stock market?
Buying shares in the stock market can give good returns, but there is also a risk of losing money. You earn a profit only when the company you invested in performs well. If the company suffers a loss, your money can also be lost.
That’s why before investing, always check the company’s condition and your financial situation.
If you’re new to investing, don’t put a lot of money into shares right away. Start with a small amount. This way, even if there’s a loss, it won’t affect you too much.
Also, keep checking updates and market conditions on the official websites of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
How to invest in the share market?
Now let’s understand how you can invest in the share market. You can follow these steps to know when and how to invest:
1.Understand the market condition
Before investing, it’s very important to check how the market is performing. Invest only after understanding whether the market is going up or down. This helps you make better decisions and reduce risks.
Demat Account (In simple words)
To invest in the share market, you need to have a Demat account. This is where your shares and investment money are stored.
To open a Demat account, you need documents like your PAN card and address proof. You can also open Demat account through a bank.
If you want to invest in the stock market, you can open your Demat account with a discount broker like Zerodha. It’s fast and easy to open, and you can also buy and sell shares through it. A link to open the account is given below.
Trading Account:
Just like a Demat account in stock market is needed to hold your shares, a Trading Account is needed to buy and sell them. All the buying and selling of shares happens through this account. You don’t need to go to the stock exchange in person — everything happens online through the trading account.
How to Choose the Right Stock for Investment:
If you want to know how to pick the best stocks, here are a few easy tips:
- Buy Good Quality Stocks:
Choose shares of companies that have done well in the stock market for many years. These companies aim to keep their investors’ money safe.
- Stocks That Give Dividends:
A dividend is a portion of the company’s profit that it gives to its shareholders.
Look at the company’s record: if it has paid good dividends for the past 5 years, it could be a good choice for investment.
3.Stocks Available at Discount:
Some stocks may be available at a lower price than their real (book) value.
If the company is well-known and has been in the market for a long time, buying its shares at a discount can give you good returns in the future.
- Stocks with Good Growth Potential:
Focus on companies that are growing fast.
Choose companies where:
The PE ratio is less than 15
The income growth is more than 20%
Their income has grown by 20% or more in both the last 3 months and the last year
If a stock meets these points, it may be a strong and safe investment.
What did you learn today from this blog? (In Simple Words):
I hope you liked this article about the share market. After reading it, you must have understood some important and useful things about the share market in an easy way.
My goal has always been to give readers complete and helpful information in simple Hindi about the stock market.
If you found this article helpful or learned something new, then please share it on social media like Facebook, Twitter, and other platforms so others can also benefit.