The stock market is not gambling, it is a simple business. If you cannot run a company by yourself, then you can buy shares of your favorite company and become a shareholder of that company. If your company makes a profit or the business of that company is likely to grow significantly in the future, the value of your stock will increase and you will make a profit when you sell that stock, and if your company makes a loss, the value of your stock may also lower.
Whenever a company needs more money to expand its business, it releases the share in the share market at a fixed price, which the public or any other entity buys. This gives the issuing company money to expand its business. Then depending on the demand and supply of that share, its value keeps increasing.
Where returns in the bank or post office are 6 to 7 percent yearly, the returns in the stock market, stock market, can be much higher.
There is an estimate that every year, inflation increases by 5 to 10%, due to which the benefit of returns from the post office or bank is adjusted in inflation.
There are many other ways of investment and good returns, in which there is an emphasis on investment in real estate in North India and gold in South India. Gold can be enchased immediately, but Gold’s safety has always been a concern. While it takes time to monetize real estate and there are many other problems in its purchase and sale.
At present, Mutual Fund is very popular in other ways, in which the Fund Manager analyzes the stock market and invests in many stocks.
In India, around 2 to 2.5 million people trade or invest in the stock market. It accounts for about 2% of the total population, while 55% of adults in the USA invest through the stock market.
Before investing in the stock market, we need to know many topics, such as the share of which company has to buy, when to buy, when to sell. Those who do not have that much knowledge or who do not have time can invest in the advice of experts.
Profit and loss in the stock market depend on the performance of the entire economy, or a particular industry, or the choice of share, or the time in which the investment is made. Your understanding, knowledge, awareness can decrease or increase your profit or loss.
The NSE and BSE are the largest institutions in India for the purchase of stock and SEBI for their regulation. Shares are traded through Broker, which is licensed by SEBI. It is necessary for any person to have a Demat Account for the sale of shares. Demat Account contains complete information about the stock purchased. Currently, all types of trading are online and in real-time and the investor gets to know in real-time.
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