WHAT IS STOCK MARKET

What Stock Market Is?

Easy Meaning of Stock Market is the stock market, also known as the equity market, is a financial market where publicly- traded companies' issue and sell shares of stock to investors. The stock market is where investors can buy and sell these shares of stock in these companies. Simple through your Demat / Trading A/c. Open Your Demat A/C.

The stock market can be divided into two main types: primary market and secondary market. In the primary market, companies issue new stocks and sell them to investors through initial public offerings (IPOs). In the secondary market, investors can buy and sell stocks that are already issued and traded on stock exchanges such as the NATIONAL STOCK EXCHANGE (NSE) or BOMBAY STOCK EXCAHNGE (BSE).



* RISK AND BENEFITS OF INVESTING IN STOCK MARKET.

Investing in the stock market can offer a variety of benefits, including the potential for higher returns than other types of investments over the long term, one can earn through.
. Dividend on Socks which You had Invested.
. Stocks Value Appreciation over long run.

However, there are also risks associated with investing in the stock market, including the potential for loss due to, volatility, and the impact of economic and market conditions on stock prices.


* THERE ARE TWO MAIN TYPES OF STOCKS: COMMON STOCKS AND PREFERRED STOCKS.

  1. Common Stocks: Common stocks represent ownership in a company and offer voting rights at shareholder meetings. They also have the potential for capital appreciation (an increase in stock price) and dividends (a portion of the company's profits distributed to shareholders).

  2. Preferred Stocks: Preferred stocks also represent ownership in a company, but they generally do not offer voting rights. Instead, preferred stockholders receive priority over common stockholders when it comes to dividend payments and in the event of a company's liquidation. Preferred stocks are generally considered less volatile than common stocks, but they also typically offer lower potential returns.

* HOW YOU ANALYSE AND CHOOSE BEST STOCKS.

There are two types of analysis Technical and Fundamental.

Technical analysis of stocks is a method of evaluating securities by analyzing statistical trends and market activity, such as price movements and trading volumes, using charts and other tools. Technical analysts believe that historical price and volume data can help predict future price movements, and they use a variety of tools and indicators like (Moving Averages, MACD, RSI, Pivot Points, Super Trend, Bollinger Bands etc.) to identify patterns and trends in the data.

Fundamental analysis of stocks is a method of evaluating securities by analyzing the fundamental data of a company, such as financial statements, industry trends, and economic indicators, Balance sheet, Debts, to determine the intrinsic value of the company and its stock. The aim is to identify companies that the company is undervalued or overvalued relative to their true worth, and to make investment decisions based on this analysis.


*Key Takeaways:

. What is stock Market.
. Risk and Benefits of Investing in Stocks.
. Types of Stocks.
. Types of Analysis.

Next Post on Detail Understanding of Technical and Fundamental Analysis.

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