Define Share Market or Stock Market

Before we go and learn about the various intricacies of the share market, let us know the basics first. The first question

 what is a share market? 

The answer to that is simple – it is an electronically-modulated market where the public limited companies offer its shares to the general public. Now, as a common people who can buy a company share or stock and the place you do this transaction is the share market.

What we can say is people approach stock trading distinctly. Everyone has their perspective and vision towards particular company share. The interesting factor is there is no rule-book or guideline that you could follow that will make your trading successful.

There are tons of factors that influence market conditions that we will learn later.

Share  Market  Investment – Different  Perspectives

To explain this point, let us assume you and one of your friends own a particular company stock of say 1000 units. Now, in a hypothetical situation, let us assume the company is not happy with the current leadership and wants to hire a CEO. As it is a public limited company, they have to share this information publicly.

Now, after hearing this piece of news, you and your friend can react to the following ways:

1. You can believe that the company may find it hard to find a suitable CEO, so you can think that the price may fall. Now, your friend may trust the company to replace the current CEO with the new one in a matter of days, hence under the new regime the company can thrive and the stock price may go up.
2. You can think that the current price is okay for you and you don’t trust how good or bad the new leadership will be. So, you can sell your owned stock. On the other hand, your friend may wait as the price may fall but believe in the company that the new CEO is better than the last one. Therefore, he thinks it is a good idea to hold the shares instead of selling.
3. You can think that under the supervision of the new CEO, the stock price may decline. So, if it does, you are willing to buy new units of shares assuming you can earn profits once the ship steadies. Meanwhile, your friend can think what he owns is good enough for now and doesn’t want to invest more till the time he believes the new regime is competent enough.

As you can see, everybody can have their views, and based on that one can react. However, what will unfold in the market is always uncertain.

We will, therefore, discuss the significant points that influence the market.

Reason for the change in Stock Prices-

Before doing any kind of Share Market Investment or Stock Market Investment, you should know the various reasons which causes Stock Prices to change.

Now that you have an idea of the trader’s perceptive, it is time to discuss the basics of how a stock’s price inflates or deflates.

There can be several aspects that you should take into consideration while you buy or sell a particular stock. Let us dive in:

Introduction of a new Product or Services

Even though it heavily depends on how competent the marketing team of a company is, but whenever they introduce a new product or services, you can pretty much say that the stock price will go high.

Now, the change can take place slowly and steadily, or it can cause a massive boost in the
price. It all depends on how the company wish to introduce the product to the market.

Step-by-Step guide to the Share Market Investment Process

Stock Market Investment is pretty straightforward process. So, here are the simple steps to begin share trading:

Open a Demat & Trading Account-

The first step is to prepare your accounts. You, of course, need three kinds of accounts – a Savings account, a Trading account, which initiates all the stock trading under your name, and the Demat account, which stores information of all the stocks you are currently owning.

Choose a stockbroking company if you think you need assistance. You must complete the KYC with the proper institution before you can start trading.

Learn to Trade & Track a Stock-

Once you created the accounts, you need to learn how to trade via Trading App or Trading Platform. It is where you must initiate or place any order.

We suggest you take a look at the Market Watch feature and track a stock that you fancy to buy or sell

Place an Order-

Once you are happy with the price point of your interested stocks, you can place the order.

Buy or Sell a share only when you are happy with the price. Once you place an order, there is no turning back. Finally, you must mention the number of shares you wish to buy or sell.

Buy & Sell of Stocks-

Since the number of stocks that the company issue already has an owner, whenever you try to buy or sell an allotted number of shares, someone must buy or sell their owned stocks.

That is why we call it the stock exchange in the first place. Now, whenever you place an order with the desired number, the exchange authorities do check whether or not you have adequate balance if you wish to buy.

Once the order payment gets verified, you will get an order ticket. Then the stock exchange finds the right buyer or seller to perform the trading.

How many Share to Buy or Sell?

What you should be bothered about is the number of shares you wish to buy or sell. Sometimes, the algorithms of the stock exchange can find multiple traders to suffice your requirements.

It is an automated process which can take a bit of time; sometimes it can be at the blink of an eye

Owner of Shares-

Once you own a company’s stocks, you are technically a part of the company ownership.

Now, some companies offer special privileges to its stockholders in the form of Dividends, Voting rights, Bonuses, and many more.

Learn about Share Market & make More Money 

Buyback	Virtual Trading	Discount Brokers
IPO	Stock Screeners	Full Service Brokers
NCD or Bonds	Private Client Group	Sub Brokers

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