Share Market/Stock Market
What is Share Market-?
Share market is the place were people invest there money by buying stocks of the companies and get high returns of companies growth percentage. In India there are the two major popular share markets is present with name Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). BSE has 5,400 companies listed and NSE has 1,641 companies are listed.
BSE runs Sensex and NSE runs Nifty
How Share Market works-?
If company owner want to invest 90 lacs on his company to grow more, but he has only 50 lacs, then he will sell 40,000 shares of his company to the people at 100 rupees each share to get more 40 lacs to invest on his company by the help of share market broker. After he has successfully invested to his company and company was grown he will give returns to the share holder.
For Example:- If company was grown 10% and people was invested 100 rupees per share then he will give them total of 100+10%=110 rupees as returns.
What is we needed to start investing money in share market online-?
✱ E-mail/Gmail
✱ Mobile Number
✱ Aadhaar Card
✱ PAN Card
✱ Saving Acoount
✱ Demat Account
✱ Trading Account
What is Demat Account-?
The share's which we buy from share market for long term, that share's will be hold/stored/kept in a demat account in a electronic form, like banks hold/store/keep our money.
Indian government has two organization's
NSDL (National Securities Depository Limited)
CDSL (Central Depository Securities Limited)
In the above two organization, in any one organization your demat account will be opened and you share's will be stored in that demat account. Demat account can only store the share's
What we need to open Demat Account-?
✱ Aadhaar Card
✱ PAN Card
✱ Cancelled Check
✱ Last 6 month bank account statement
What is Trading Account-?
Trading account is used for transactions for buying and selling share's, and your trading account should be linked to your bank account to transact money from bank account to trading account to buy or sell share's.
Transaction from bank account to trading account is called pay in and transaction to tracding account to bank account is called payout
What is the process happens in buying and selling shares-?
If you want buy share of rupees 10,000, then you will first transfer money from your bank account to trading account and then trading account will transfer money to share's seller and share's seller will transfer share's of rupees 10,000 to your demat account from his demat account. The same process will happen if you become seller and to your customer.
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