Share Market: A place where shares, stocks and bonds are bought and sold.
In brief we can say that a stock market / share market is a public market for the trading of company stock and derivatives at an agreed price. The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. Stock market some times considered as speculation market, because it is very risky market. If you are novice to the market then be careful.
Indian Share Market is the third largest stock market in the world. Almost every country has its own Stock Market like NYSE in United States, Toronto stock exchange in Canada, London stock exchange, Tokyo stock exchange, Hong Kong stock exchange, and in India it is Bombay Stock Exchange. We here discussed about only Indian stock market.
If you took your first step in this market, then be alert it is a very huge market. Warren Buffett has suggested that every investor should be able to understand basic ABC of stock market, accounting principles, an annual report and stock market history. You probably do not need to become an accountant, but being able to understand the basic system of the game that can only help you.
Here are some important tips that must follow by the the beginners:
The very first step is to understand that there are no fixed sets of rules for investing in any company, you can choose any one of them.
Before taking your investment decision you should completely understand how your investment will work and all of the details of the company in which you are going to invest.
Make a simple plan to determine your goals and needs. This will help you to determine where to invest, how to invest and how much money to invest.
Since you are new to the market, then you are suggested to do not make huge investments.Always start with small investments.
Spread out your risk. All the money should not be invested in high-risk stocks. Equilibrium needs to be maintained between high-risk stocks and low risk stocks. Both high and low risk stocks need to be considered. This is the only way you can save your hard-earned money.
Concepts of share prices need to be well understood. Prices keep on fluctuating depending on future projections. Stock need not to be purchased on rumours. Analyse the stock before taking final decision to invest on it. Obtain information on any problem that the company might be facing.
Investments need to be diversified. Equilibrium needs to be maintained in case of investment it means money should be placed both in long- term investment as well as short- term investment.
Always try to get help from those service industries which provide valuable and appropriate tips for your well being.
Have a safe and healthy journey in Indian stock Market.
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This blog is not intended as professional advice. The author disclaims any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
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