Share Market Basic Concept Series: If you want to understand the basics of share market in a sequence and in very simple language then you are at right place.
There are many articles on the Internet related to the stock market, but there is no hierarchy in it, so it becomes very difficult to understand the whole concept.
In the entire series of this article, we will discuss the basics of share market in a simple and easy way, and understand its various important aspects. You can excess all articles by clicking this link;📈 Share Market and Related
|📖 Read This Article in Hindi|
| What is Share Market?
In the time period we live in, the stock market is an important part of our economy. A part of our economy means a part of our life. That is, we are living in a market based economy.
In this market we are sometimes investors, sometimes traders, sometimes lenders and sometimes borrowers.
A part of this market is the share market or the stock market, where shares are bought and sold. This market is so influential today that whether we want it or not, it affects us in some way or the other.
| Why is there buying and selling of shares?
We definitely know so much about share that it means to share or share the things of our parts with others. Like we share our food, share our feelings, share our car etc.
But talking in the sense of the market, we share our share of things only when we need something in return. And what happens if you want money.
The concept of capitalism is that do not be satisfied with the wealth or capital you have now, but increase it and keep increasing it.
It will grow only when we increase our business, business will grow only when productivity increases and productivity will increase only when extra capital is put in it. This capital can be brought either by borrowing (loan) or by selling shares of your business.
If the business is to be increased by borrowing, then the matter is different, but when the system of increasing the business by selling shares is adopted, then the buying and selling of shares starts.
| Where does the buying and selling of shares take place?
If there will be buying and selling of shares, then the question comes, where will it happen? If I want to sell my business shares, where do I find the person who will take it? But the interesting thing is that I am not the only one who buys and sells, but there are thousands.
That is why a stock exchange was created, which acts as a medium between the buyers and sellers. Stock exchange continued to function well, without any disturbance, that is why there was a need for its regulation and an institution like SEBI was created.
With the passage of time, the economy expanded, the market became an important part of our life , we were allowed to collect as much money as we wanted, more and more people were actively participating in this market system with the aim of accumulating more and more money. started participating.
With such expansion, new things were added to it and the arrangements became complicated for the common people. But is it really that complicated?
| Why is it difficult to understand the stock market?
It is not so, if things are understood in a systematic way, then it is not complicated at all. In fact, if you want to understand it from the beginning, then you should start with understanding the financial markets.
Broadly speaking, the financial market can be divided into two parts – (1) money market and (2) capital market. Although cryptocurrency is also running for a few years now, it is also kept under this.
Share Market Basic Concept Series Chart
With the help of the chart below, you can understand more clearly where the stock market comes in all this:
To understand the stock market better, we have to understand each and every topic mentioned in this chart in a sequence because many topics are interrelated with each other which is necessary to understand. We’ll start with the financial market, because that’s the root of it all.
️After that we will understand the money market and then the capital market. The stock market is a part of the capital market itself, but before understanding it, we will understand the securities.
We will understand this first because if we talk about a bond or a share, it is also a security. These securities are bought and sold through the stock exchange, so after that we will understand the stock exchange.
After this we will understand through interesting examples that how a company is formed then how it issues shares, how can we buy shares as an investor, what are the procedures followed before buying? We will know everything.
After understanding the stock market, we are going to understand the mutual funds, insurance, bond market, derivatives etc as many other topics related to it; Will read and understand.
All the articles are presented in a systematic and orderly manner, you just have to be patient and read in a sequence. All articles have serial numbers on their thumbnails so that you don’t have any trouble finding the order.
️ As we have discussed above, we will start this series with financial market, so let us understand what is financial market .