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Investing in Share Market

What is Investing in the share market?           Share market is a platform in which common people can able to buy any listed company shares or be a part of that company. When the company grows either they will give their shareholders dividend or based on their performance share price will rise. If you buy a stock at 100 RS and in 1-year share price move up to 115 RS and they gave a dividend of RS 2. Means your money is grown 15% as share price growth and 2% as dividend total of 17%. This is higher than the inflation rate of the money . What is the risk in the share market?           Share market is not only for common men. There are many top players like Foreign investors, Domestic Investors, some big market players, and finally Retail investors. When a pandemic like a corona or any other bad news hits, these big investors take their money back from the market and will put those big number of shares in the market and make it ...

Steps to Invest in Share Market

These steps are my experience from India. Requirements to Invest in Share Market PAN Card - Used to create a Demat and trading account. Demat account - used to store electronic shares  Trading account - Used to buy and sell shares Demat account and Trading account opening steps are explained in this article and PAN card needs to be available for the investors. If you don't have PAN, apply for that and proceed below process. Check PAN card application details here Step 1 - Selecting Stock Broker          In India, most people are using these 3 brokers to do investment and trading(Zerodha, Upstox, 5 Paisa). All discount brokers will activate the account within 2 days(This includes verification time). You can have more than 1 Demat account but first, you need to select which broker will be suites you. Consider below points Demat account opening charge is free for all 3 brokers Trading account opening fee is 200 Rs in Zerodha and it is free in 5 Paisa and Up...

What is Share Market

What is a share?          A share is nothing but a company's ownership. In every business, they need some money for their business expansion. So they will give some percentage of share to the public and get the money for their expansion. These shares are distributed to the public through Initial Public Offering(IPO). We will discuss this later.  What is Stock Exchange?          This is where the buying and selling of shares will occur. Once the shares are distributed to the people some people will try to sell that share to another person, some will try to buy those shares from the shareholders. So this stock exchange acts as a medium to do this action. In India, there are 2 exchanges(Bombay Stock Exchange(BSE) and National Stock Exchange(NSE)) Why share price changes?          There are a lot of people who will do buy and sell in the share market. The share price will get fluctuates based on these buy and se...

Why the price is increasing for all goods? What are Supply and demand?

 To understand this concept imagine a scenario for Farmer John.           John is cultivating 100 bags of rice every 3 months means he can supply 100 bags of rice every 3 months. His customers need 90 bags in the first cultivation means demand is equal to supply. So John will sell rice bags for 100 RS per bag(Assume)           On the second cultivation, John can able to deliver only 100 bags but one new customer is demanding 50 bags. So he needs to supply 140 bags. Here the demand is high and supply is very low. So John thinks about how to tackle this situation and he needs to satisfy his customer.           He plans to supply 50% of their customer needs for 100 RS per bag as like previous cultivation. Now he supplied 70 bags to the customers. Still, 20 bags are in his warehouse. He planned to give those 20 bags to the customer who gave the highest price. The last customer bought those 20 bags...

Basics of Money

  What is Money?           Money is a thing which is used to get our required goods and services.  In simple words, a piece of paper used as a medium of exchange.  It is important in everyone's life and its value will be decided by the Government or some top government banks. It plays a key role in every type of situation society will judge the status with money.           I am not saying live only for earning money don't take it in another manner. I am saying to fulfill our dreams and needs we need money.           In the olden days, only goods act as a medium for goods transfer. If one person is cultivating rice, he will exchange his rice for another person with wheat of some other material. There arises a problem some foods will grow in a specific period and some materials required more time to manufacture.           To overcome this issue gold is use...