How To Invest Money In Stock Market?

  Hi Friends, Welcome fingroow . Today we are going to discuss about how to invest in the stock market, so let us start with what are the various investment opportunities in the stock market.

 Contents 

1 What is Share Market?

1.1 How does the Share Market work?

1.2 What is Demat Account?

1.3 How to open Demat Account?

1.4 What is a Trading Account?

1.5 Important Documents for Demat Account and Trading Account 

1.6 How does the price change in the share market?

1.7 What is Sensex and Nifty?

1.8 Types Of Securities 

What is Share Market?

You will get information about what is share market in Hindi. Let us tell you that in share market, companies sell their shares to consumers and they will profit only when the company is profitable.

In the stock market, Mutual Funds, Debentures, apart from this many other securities are bought and sold, they can be bought and sold only through the Stock Exchange.

There are two main stock exchanges here:-

BSE : Bombay Stock Exchange

NSE : National Stock Exchange

How does share market work?

If you want to invest in the share market, then first of all you have to understand why the company comes in the share market because we get profit or loss from the company itself.

If the company makes profit then we will also profit and if the company suffers then we will also suffer.

Any company enters the stock market so that it can make good profit, when it needs money for the growth of the company.

So the company brings and sells shares in the share market, it gets money which it uses well.

Before you invest in Share Market, it is very important for you to understand it, first of all, whatever company is there, it brings IPO (Initial Public Offering) by getting its shares listed in the Stock Exchange and those are the shares.

After the IPO process is completed, the shares come in the market and they are bought and sold by brokers and stock exchanges through investors.

What is Demat Account?

Demat account is the account in which we can keep our money in the same way as we keep the money safe in our banks.

Demat Account is used to invest money in Share Market, all the money deposited in our Saving Account has to be invested in it, from here you can invest money in Share Market and whatever profit will come in our account.

There is also a benefit of Demat Account, all the securities (Mutual Fund, Government Securities, Shares) related to the money we invest in it can be kept together in Electronic Form

How to open Demat Account?
To open a Demat Account, first of all we will need to do KYC of our Bank Account, this account manages all our Funds Shares and provides all the information related to the Fund etc. we buy, we Demat Account in exactly the same way. Can open as we open a normal account in the bank.

What is Trading Account?

Talking about Trading Account, through this we can use it to buy and sell in our Shares Business.

You can either open it with a broker, he can manage your account, being online, you can see it anytime and you can buy and sell shares.
Important Documents for Demat Account and Trading Account :-
To open these accounts, we should mainly have these documents

    •  2 Pass-port size photographs
    • Cancel check
    • Address proof
    • Pan card
    • Income proof  
You have to give a photocopy of all these documents as well as ask for the original for verification and after this process, once you see all the papers,

And read them well, after verification, your Trading Account is created and now you are start  Trading in stock market.




How does the price change in the share market?

Friends, you must have started understanding the Ganit of Share Market, just a while back we told you about IPO (Initial Public Offering), when the IPO is completed.

So the price of shares keeps on changing according to its demand and supply in the market. If the number of buyers of shares is more than the sellers,



So the price of shares will increase and if the number of sellers is bigger than those who buy, then its price will decrease.
What is Sensex and Nifty?

 Sensex: Talking about the word Sensex, it is composed of Sensitive and Index words, it is the point of Bombay Stock Exchange, it is determined by the companies which are registered in BSE.

 This is done on the basis of the total value of the companies in their market, its price changes daily, it is one of the oldest stock market in India.

 We can say in simple language that if the Sensex rises then the company registered in BSE is performing well and if it falls then the performance is doing poorly.

 Nifty: Talking about the Nifty word, it is made up of the word National and Fifty, it is the point of the National Stock Exchange, it is determined on the basis of the total value of the companies in the market of the companies which are registered in NSE.

 Let us tell you that if Nifty increases in this also then the company registered in NSE has performed well and if the company registered in NSE gave poor performance then it means Nifty would have fallen.

Types Of Securities :-

 Friends, now let's talk about some securities of the stock market or share market because many of us think that only shares can be traded in the stock market, but this does not happen,

 Like shares, there are some securities which we can use in trading and trade in the stock market.

 1) Mutual Funds :- Talking about Mutual Funds, it does not give us a chance to invest in the Share Market itself, but it gives us a chance to invest in other places, if we invest in Mutual Funds.

 So the money invested in it is invested in bonds of government and private companies, so it is easy to invest in Mutual Fund like a bank and the facility is also good.

 How to move forward the money invested here, then the advisors, managers of Mutual Funds give correct information from their experience and there is also a profit.

 The Rofessional Fund Manager advises to invest all the collected money in other places according to itself and get the profit of the customer, instead they charge some fee.

 2) Bond :- Bond is like a loan in a way, when a company needs money, then they can take loan or they can take loan through public.

 As an Investor and the public do Bond Isaue, and they have to return the money on a fixed date, the companies which are there, they pay interest from the fixed rate on the bond,

 And when the bond's date is reached, then instead of the bond, the repayment is done.  Timely interest is given on the fixed rate through the company and when the bond's time is over, then the repayment is done.

 SIP :- Sip is called Systematic Investment Plan, there is only one way to invest in SIP Mutual Fund, a fixed amount is invested in it,

 Investing through SIP can be a very good way for those who do not have much knowledge about the share market and are aware of its modalities in the market.

 According to its fixed time frame, a fixed amount is invested, through this only Mutual Fund, Gold Fund ETF, Share Market Me Invest Kar Sakte Hai.

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