Basics of Share market.

Basics of Share market 

What is the Share Market? 

The share market, also known as the stock market, is like a big marketplace where people buy and sell Shares of companies called shares. It's a place where dreams of financial growth meet the exciting world of business. When you buy shares of the company, you actually own a very small ownership of that company shareholder.  

Here's what you need to know about share ownership:- 

1. Shares represent ownership in a company. 

2. Their value can go up or down based on how well the company is doing well for growth. 

3. You can earn money through share price increases and dividends. 

How to work the Share Market? 

1. Companies list their shares on stock exchanges by IPO. 

2. Investors apply for IPO by demat account. 

3. Investors buy and sell these shares after listing on the exchange (NSE AND BSE are major exchanges in India). 

4. Prices change based on supply and demand or any event. 

5. Brokers help facilitate these trades for trading and investing. 

How to Start Investing in the Share Market? 

1. Educate Yourself about the share market. 

Knowledge is power, especially in the share market. Start by: 

1. Reading books on investing. 

2. Following financial news like Money control, investing.com  

3. Take online courses on stock market basics by Upstox, a free learning platform also available in Upstox.  

2. Set Your Financial Goals. 

Before you start, think about what you want to achieve.  

1. Are you saving for retirement?  

2. Planning a big purchase?  

3. Your goals will shape your investment strategy. 

3. Choose a Reliable Broker 

A broker is like your guide in the share market world.  

1. Have a good reputation in stock market brokerage houses. 

2. Offers reasonable fees for investing and trading. 

3. Provides educational resources for the share market. 

4. Start Small and Diversify 

1. Don't invest in any stock or mutual fund, always invest to diversify. 

2. Begin with a small amount and spread your investments across different companies and sectors. 

5. Success mantra for the Share Market 

1. Be patient - success often takes time for good returns. 

2. Don't let emotions drive your decisions as per market conditions. 

3. Keep learning and staying informed with news. 

4. Regularly review and adjust your portfolio with good stocks. 

Risks and Rewards 

Potential Rewards: 

1. Capital appreciation in long-term investing. 

2. Dividend income as per company profit. 

3. Beating inflation. 

Possible Risks: 

1. Market volatility. 

2. Company-specific risks. 

3. Economic downturns if any global crisis or any bad news. 

It's important to understand and accept these risks before investing. 

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