What is the Share Market ?

What is the share market?

What is the share market ?

Why is it in place?

How does it work? 

advantages and disadvantages?

And how you’ll invest money in it

 

Stock market, share market or equity market- all three mean an equivalent

These are markets where you’ll buy or sell a company’s shares

Buying shares of a corporation means buying some percentage of ownership of that company

That is, you become the holder of a percentage of that company

If that company makes a profit, some percentage of that profit would even be given to you https://relieftrade.com/127-2/


 

The origin of share markets

Around the 1600s, there was a Dutch Malay Archipelago company, just like the British Malay Archipelago company,

There was an identical company within the country of Netherlands today, referred to as Dutch Malay Archipelago company

In those times, people wont to enjoys tons of exploration using ships

The entire world map had not yet been discovered

So the companies wont to send their ships to get new lands and trade with distant places

The journey wont to be of over thousands of kilometers aboard a ship

an enormous amount of cash required for this

Not one person possessed such amounts of cash individually in those times

So, they publicly invited people to take a position money in their ships

When these ships would travel long distances to travel to other lands and are available back with treasures from there

They were promised a share of those treasures/money eventually

But this was a really risky affair

Because during those times, quite half the ships did not come

So, rather than investing during a single ship, they preferred to take a position in 5-6 of them

So that a minimum of one among them had chances of returning

One ship wont to approach multiple investors for money

 

There were open biddings of the ships on their docks

Docks are the places where the ships begin from

Gradually, this technique became successful because the cash crunch faced by the businesses

was supplemented by the folk . and therefore the folk got an opportunity to earn extra money

You must have read within the history books

about how rich English Malay Archipelago company and therefore the Dutch Malay Archipelago company became during those times

Today, each country has its own stock market

and every country has become greatly dependent upon the stock exchange

Stock exchange is that place, that building where people buy and sell shares of the businesses

The market are often divided into two types- the first market and therefore the secondary market

Primary markets is where the businesses sell their shares

The companies decide what exactly would be their share prices

Although there are some regulations during this too

The companies cannot manoeuvre an excessive amount of because tons of it depends upon the demand

How much price are the people willing to buy the company’s shares

If the worth of the corporate is 1 lakh rupees,

it sells 1 lakh of its shares and offers shares at 1 re per share

If its demand is high and tons of individuals want to shop for its shares,

the company would obviously be ready to sell its shares for a better price

the businesses do nowadays is decide upon a variety . there is a minimum price and a maximum price

They plan to sell their shares within that range

A point to be noted here is that each share of the corporate has equal value

upon the corporate to form a decision what percentage of its shares it wants to make

If the entire value of the corporate is 1 lakh, then it’s going to make 1 lakh shares of 1 re each,

Or it’s going to make 2 lakh shares of fifty paise each

When companies sell their shares within the share market, it never sells 100% of them

The owner always retains majority of the shares to stay possession of his deciding power

If you sell all the shares, then all the buyers of the shares would become owners of the corporate

Since all of them become owners, all of them can take decisions regarding that company

The individual who has quite 50% of the shares would be ready to make decisions regarding the corporate

Therefore the founders of the corporate like better to retain quite 50% of the shares

For example, 60% of the shares of Facebook are retained by Mark Zuckerberg

The people that have bought shares of the corporate can sell it to the opposite people

where people buy and sell shares amongst themselves and trade shares

In the Primary Market, the businesses set the costs of their shares

The companies cannot control the costs of their shares within the secondary market

The share prices fluctuate depending upon the demand and provide of the shares

So the prices of the shares fluctuate depending upon the demand and provide

Almost every big country has its own stock market

There are two popular stock exchanges in India

One is that the Bombay stock market which has around 5400 registered companies

The other is that the National stock market that has 1700 registered companies

With numerous countries registered within the stock market ,

If we would like to watch , overall, whether the costs of the shares of the businesses are moving up or down,

How can we view this?

To measure this, some measurements are put in place- Sensex and Nifty

Sensex shows the typical trend of the highest thirty companies of the Bombay stock market

averaging out, whether the shares of the businesses are moving up or down

The full sort of Sensex, the sensitivity index, displays an equivalent

The number of Sensex , that it’s reached 40,000 marks

The number itself means not tons

The value of this number are often understood only upon comparison with the past numbers

Because this number has been randomly decided

Gradually, the sensex has been rising and it’s reached the 40,000 mark within the past 50 years

So this shows how far up have the share prices of those 30 companies gone in these past 50 years

There is another similar index- NIFTY- National + Fifty

Nifty shows the worth fluctuations of the shares of top 50 companies listed on the National stock market

 

SEBI- Security And Exchange Board of India

is a regulatory body that appears into issues like which companies should be listed on the stock market

and whether it’s being wiped out the right manner or not

https://sharemarketacademy.com/

 

 

 

 

 

Leave a comment

Your email address will not be published. Required fields are marked *