Today in this article we will get some basic information related to the share market, like what is a share, why does a company need a share, how is a company’s stock list, how does a company earn money in the stock market, and we share shares. How to earn money by investing in the market. What is SEBI, what is stock exchange, what is Nifty and SENSEX, how can we buy and sell shares in the stock market, do we have to pay tax in the stock market.
So let’s start by reading this article carefully about some basic information related to share market and get good information about share market.
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If there is any part of anything, out of any big thing, then a part of it is called share. Now let’s talk about when we buy shares of a company from the stock market, suppose a company had 100 shares and we bought 2 shares, then we will be called share holders of 2% of that company.
Now let’s talk about why the company needs shares, in this way shares are needed, suppose if there is a company, it makes something similar or sells it somewhere else, then in this way the company There is benefit.
Let us understand with an example that when a company makes a product, raw material is needed for it, an employee is required to prepare that raw material and when the product is ready, it sells it in the market. It takes time
If the money does not come immediately, then the company has to manage its expenses such as buying raw material or paying salary to the employer, or the company has other expenses, all these expenses require a lot of money. When the company operates on a small scale, it needs less money.
But as the company gets bigger then its expenses also increase and after selling the product which has been made in the market, it takes a long time to get money to meet all these needs. To meet these needs, the company has 2 options, one option is to go to the bank and take a loan and manage the expenses of the company with the loan money.
The second option is that they divide their company into small parts and make shares so that any common person can invest their money in it, in this way money comes to the company and the company benefits. has made people its sharers as its share, other people who have taken part.
They will also make profit. When the company will profit by investing money, those who have bought the shares will also profit, in this way the company needs the shares, in this way both the company and the common man benefit.
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Now let’s talk about how and from where the stock starts, when any company reaches from small level to big level, then it brings its IPO and gets the IPO listed in the stock market. Is. First of all the company brings its IPO which is also called Initial Public Offering.
There is a price decision of an IPO, there is a debt decision, at that price, sometimes it happens that the company has brought all the IPO shares and people have applied more means more people want. If we get IPO then in that case it is implemented randomly through automatic system.
Who will get or who will not get it, let us understand with an example, suppose that more people applied than the IPO that the company brought, then not everyone will get it and if the IPO brings more then everyone will get the IP. Through .o the company comes with its offer at the first time.
Then the company gets listed in the stock market, after that anyone can buy and sell their shares. To bring the IPO, the company has to show its documents, there are some things that the company has to follow. SEBI Securities and Exchange Board of India has been created to control the stock market, which is the regulator of the entire stock market.
SEBI sees that if something is going wrong, the company is not telling things properly or hiding some things about the company and inflating its profit to take money because the higher the profit of the company will be.
In the same way, more and more people would like to buy the shares of that company because they will earn profit only when the company earns more money, in this way SEBI has an important role in the stock market, SEBI only keeps an eye on the company as well as on the investor. It keeps an eye on whether it is doing anything wrong, if something wrong is happening somewhere, SEBI takes action on it.
Now let’s talk about what is a stock exchange, where whatever shares the company has, it gets listed on the stock exchange like there are two big stock exchanges in our country which are very popular, one is B. SE and NSE
BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) usually get its shares listed at both the places. The rules are slightly less strict in BSE while the rules are more strict in NSE. Generally people buy NSE shares, but they also buy from BSE. There is no problem in this.
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Now let’s talk about what is NIFTY and SENSEX, first of all, let’s talk about Sensex companies have been listed in the stock market, many companies are now going up or coming down, to know what is the condition of the market. An indicator has been made for him to understand as let’s understand with an example.
Like whether there is a light in the house or not, an indicator is made like a small bulb, which shows whether there is a light or not. Indicator has been made to know how it is happening, it can be known by SENSEX and NIFTY in both the ways.
What happens in the Sensex is that whatever companies are listed in BSE, which is a stock exchange, according to the market pack, the 30 largest companies, all of them together form a group, that is called Sensex. The Sensex was started in 1986 and its base point was kept at 100, currently the base point is running around 55 thousand, so you can see how much the Sensex has increased since 1986.
Now let’s talk about NSE exchange in Nifty of Nifty, the 50 largest company listed in it means the market capital which is the highest, in that order a list of 50 big companies is prepared, that list is sometimes called Nifty 50 We also say that by this we also get to know that what is the condition of our stock market, is it going up or going down.
As soon as there is a problem like an epidemic disease comes, then the market goes down, then where does it come down, it is known again of Sensex and Nifty Nifty 50 was started on 22 April 1996, its base date is 3 number 1995 and the base point was taken one 1000 thousand Nifty 50 is moving at around 16450 points today 22nd August.
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Now we know that how we can buy and sell shares in the stock market To buy and sell shares in the stock market, first we need a demat account, to open a demat account, there are many companies that open a demat account. Most of the banks are involved in this, through them we open our demat account.
Demat account gets opened from which we can buy and sell shares. There is a time set for the stock market, in that time only we can buy and sell shares, the timing of the stock market is from 9:15 to 3:30 in India, the stock market is open only from Monday to Friday, Saturday and Sunday. The stock market remains off in the rest of the national holidays as well.
Now let us understand that how to earn money in share market, the way to earn money from share market is when the share price is low, then to buy the share of that company whose share price is low then later the share of that company If the price of the stock increases, then that share has to be sold, this is the process of the stock market. Now the question comes that how to know which company’s share price is low now and in future the share price of that company will increase.
There are many ways to find out the price of a share, one of them is the fundamental analysis. There are two ways people earn money from this, one is investing and one is. Trading Investing is what happens when people buy shares, leave them after buying shares, do not sell them again and again, do not buy shares again and again, this is investing.
This happens in trading, buy the share and sell the shares as soon as the profit I want to sell it, one is intraday trading in trading and the other is swing trading, in intraday trading this happens on the same day the stock is bought. Whereas in swing trading it happens week after buying the stock, sell the stock after 15 days and months.
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Now let’s talk about whether tax has to be paid in the share market, yes tax has to be paid, what we have earned from the stock market, we also have to pay tax, suppose we have earned by trading, within a year, we bought shares of any company. And sold it is taxed differently and it is also called short term capital gain.
And if the share is bought and held and sold after at least 1 year, the profit that is made then we are called long term capital gain, whatever profit will be there, the percentage of tax of these two is different, it is long term capital gain. The tax that is levied on it, if there is a profit of one lakh, then it is taxed at 10%, in the same way, if someone has earned some money, like intraday, swing trading, then he has to pay a tax of 15%.
Read For More Details : Stock Market-Basic Knowledge
So this was some important basic information of the stock market, if you got to learn something in this article, then you should share this article with your acquaintances and tell them also. You will get a lot of information related to such and share market in this website.