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First Entry In Share Market

Online trading is a path, by help we will buy and sell our shares easily and very sort timing period in online. If you are new in share market, it will better if you achieve some ideas about it. Don’t worry about it, because it is very easy to click in share market. If you have patience, I will agree to tell about my feelings about this line. When I passed Graduation, I am unknown about share market. One day one of my seniors told about this and I have listened mindfully as like you read my tips. So he marked that I have more interest to enter in this way. He continued tips of success in this way. On the date he gained three years experience, so that is his positive for me. Now days I clicked this line and made my future. Now I am a expert on page trader. You also enter in this market, if you have interest and more patience.

Before you actually start investing and trading, it would be advisable to clearly understand a few basic concepts and ideas related to business and finance. Presented in the simplest terms, these would give you an insight that can improve your investing decisions...

A few things you should know: -

1.What are Markets?

It is very simple word to make you understand. Market is a place where we are able to buy and sell our necessary product. Market is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc.
As same A stock market is a market for the trading of company stock/ shares, and derivatives. This includes securities listed on a stock exchange as well as those only traded privately.

It also enables corporate, entrepreneurs to raise resources for their companies and business ventures through public issues. As a result, idle resources (of investors) are transferred to those who need them (corporate). Markets, thus, provide channels for reallocation of savings to investments and entrepreneurship.

2. What are shares?

A share is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the value of the company in case of liquidation. Equity is a share in the ownership of a company. It represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company increases. The terms share, equity and stock mean the same thing and can be used interchangeably.

3. What is a stock exchange?

A stock exchange, share market is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there.

The Bombay Stock Exchange Limited, or BSE has a nation-wide reach with a presence in 417 cities and towns of India. Its index, or market indicator is known as the Sensex. It gives a general idea regarding the movement of the stocks; whether they have gone up or have gone down. If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up.

The S&P CNX Nifty, or simply Nifty, is the leading index for large companies on the National Stock Exchange of India. It consists of 50 companies representing 24 sectors of the economy, and representing approximately 47% of the traded value of all stocks on the National Stock Exchange of India.

4. Who is a broker?

A stockbroker is person who is licensed to trade in shares. Brokers also have direct access to the share market and can act as your agent in share transactions. For this service they charge a fee. They can also offer additional services like advice on shares, debentures, government bonds and listed property trusts and non-listed investment options cash management trusts, property and equity trusts. They also inform you fast data about stocks as soon as possible, because they are benefit if you find more inform about share market and transaction more money.

In addition a stock broker can plan, implement and monitor your investment portfolio, conduct research and help you optimize your returns.

5. What is a Demat A/c?

Investors who wish to trade in the market need to have a dematerialized, or demat, account. In India, the government has mandated two entities –National Securities Depository, or NSDL, and Central Depository Services (India), or CDSL – to be the custodian of dematerialized securities.

6. How to receive income from shares?

The income received from shares is called a dividend.

We invest in shares to make money – either through a share’s capital growth, i.e. the amount by which the share price increases in value over time, or through the dividends it pays to its shareholders. Dividends are payments made by companies to shareholders from their profits. Not all companies pay dividends. Dividends are usually paid twice a year and are in effect the yield from your investment. Some growth companies plough most of their profits back into generating more business rather than paying out dividends to investors.

7.How much should you invest?

That is no force to invest more money in share market. It is depends on you, how many you will invest here. It may 1000.00 rupees or may 10,00000.00 rupees. There are more and more rich people in this market .You should not worry to listen them. They also one day enter as like as you having just 2000.00 amounts. So there is no obstacles to less invest in share market.

8.How you get profit from share market?

Forget about share market, now come to general market. Suppose you buy a product 10.00 rupees and sell it 15.00 rupees. Generally you will get 5.00 rupees profit.Isn’t it??

Like this you will buy shares from share market and sell shares to share market. One thing you will collection latest news about shares from your friends and other advisers, which will help you to get profit.

My hope you must gain some ideas about share market and will invest in share market.