What Is Stock Market? How To Earn Money In Stock Market In English

What Is Stock Market? How To Earn Money In Stock Market In English


In today's competitive world, everyone wants to be rich.  People work hard day and night for this.  People also save some part of their earnings.  But it is not enough just to become rich.  If we want to secure our future, then we have to invest in some place.  Such as stock market, share marketing, mutual fund etc.  In this post we will go, what is a stock market and how does it earn?

 If you invest money properly in the stock market then you can benefit greatly.  But at the same time, if you invest money in the market without thinking, then a loss deal can also be made for you.

 That is why it is important that you know these markets properly.  Today in this article, we will give you information about the stock market, so that you can understand it better.

 What is the stock market and how to make money from it?
 Let us know what is a stock market, what is a stock market,



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 Share market, stock market or equity market are all the same, so do not get confused.  This is the market where you can buy or sell the shares of a company.

 Buying shares means that you are buying some percentage of that company's honorship.  Meaning that after buying the shares you become a certain percentage owner of the company.

 Now if the company will profit then you will also and if that company is lost, then you too will have to bear the loss.  A very easy to understand example.

 Suppose you are planning to open a startup, you have 10,000 rupees but in that 10,000 rupees you will not work.  So you asked a friend to invest Rs 10,000 in your startup.

 That is 10,000 your share and 10,000 your friend's share.  Now both of you friends have become the honors of 50-50 company.  Any benefit or disadvantage in future will be equal share in both of your friends.

 This happens on a large scale in the stock market.  Where a company can sell its shares to anyone all over the world.

 Stock / stock market history


 This market was started about 400 years ago.  Dutch east India company of Netherlands launched the concept of share market for the first time.  Actually, at that time trading was done through ships.

 Also, not all countries were discovered.  In such a situation, the company used to send its ships for trading through the seas.  There was no money of any one person in these ships.

 So the Dutch East India Company had appealed to the people to invest money in these ships and told the people that when there will be profit in trading through these ships, then you will also share the profit according to the money you have invested.

 However, it was quite risky to do so at that time as most of the ships did not return.  That is why these fixed people should now make multiple investments.

 That is, a person invest money in 5-6 ships not in a ship so that one ship is expected to make profit.  In this way, stock markets started to form and people started investing their money in many places.

 The bid system started from the place where the ships used to leave for trading.  Gradually, the need of ships' money started getting fulfilled and people started getting profit.

 This concept of the stock market started from there, became quite popular.  Today every country is dependent on the stock market.  Each company has its own stock exchange.  Let's understand stock exchange.

 Stock exchange


 Stock exchange is where people buy and sell shares of the company.  The market is divided into two parts.

 Primary Market

 Secondary market

 Companies sell their shares in the primary market.  The value of their shares depends on demand.  That is, if the demand for the products of a company is high and if that company sells to its shares, then their value will be higher.

 How many shares can a company have?


 The thing to keep in mind is that the value of every share of the company is equal.  A company can distribute any number of its shares to people, but the value of all of them will be equal.

 Suppose a company is worth Rs 1 lakh and buy 1,000 shares.  Now the price of those shares has increased according to the demand and if you sold this share for 2 rupees, then you became a profit of Rs 1,000.

 How to earn from Stock Market?


 How to make money from stock market?  This is an important topic.  To make money in the stock market, discretion, understanding and strategy are very important.  Apart from this, you should also have patience.

 Let us tell you some fundamentals of being successful in the stock market so that you can earn big profits.

 1. Complete your homework


 This means that whenever you plan to invest in a company, first study the company thoroughly.  See the demand in that company's market.

 Suppose now that the summer season is coming, then cooler and AC remain in great demand.  So invest in a company that sells these products and whose products are in demand.  Then you can be profitable.

 2. Share in business


 Never invest in shares but invest in business.  The best example of this is that Warren Buffett invested $ 1 billion in Coca-Cola in 1988.  In return, the company earned a 10% rate of return for 10 years.

 3. Do not get into the words of others

 By this I mean to stay away from sheep.  Do not invest in anyone's words.  Study well first.  You can consult an expert.

 4. Always Invest Extra


 This is the best rule to earn profits in the stock market.  Always invest your extra funds, ie money you do not need in a short period.  Sometimes the value decreases and due to need of money, we sell our shares in less money.  Never do this.

 5. Keep an eye on the market


 Just waiting for profit by investing is not the right step.  It is important that you keep your eye on the market.  Notice when the shares are falling, when they are bouncing.  Read newspapers, watch TV channels so that you can take care of your shares.

 Conclusion


 Friends, through my article, I have tried to convince you all about the stock market in very easy language.  So that you avoid investing in wrong place.

 This article covers all topics like what is the stock market, history, how to do the investment.  Along with this, we have also given some market terms in it so that you are more easy to understand.

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