Share Market Basics: What is the stock market? How much is the stock market? And why 'broker'?

Category: Education

Many misconceptions about the stock market are in the minds of many and it is natural to have them. The stock market is a tool to make a lot of money, the stock market is a gamble, the stock market is a game of the rich, and the stock market is a tool to drown money, and so on. However, the stock market is a vast ocean and can be a great investment option. Those who want to study hard and who have the qualities of patience and perseverance will succeed here. The attraction of the stock market has increased in the last one and a half years. During the Corona period, many have experienced stock market ups and downs in lockdown. Meanwhile, more than one crore demat accounts were opened in India. After an initial decline in the Corona period, the stock market recovered in a 'V shape'. This performance was experienced not only in the Indian stock market but also in major stock markets in all countries of the world. This one-sided boom is still going on and this has to be called a big 'bull run'. All beginners in the market and all investors who have not studied the stock market need to be fully acquainted. From here, things get trickier, and this is where the true meaning of stock comes in! Let's learn some basic concepts of the market in simple and understandable language and introduce ourselves as mature investors. What is a share? Shares are equities. Share is an English word. Shares are also called stocks. The total share capital of the company is divided into several shares. Each share is a share. Being a shareholder means you are partly the owner of the company. You can buy and sell these shares from your broker through the stock exchange. The company needs more funding for its expansion. This fund was raised from the market I. P. O. (Initial Public Offer). What is a stock exchange? The medium through which shares are bought and sold is called the stock exchange. India has two exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Companies listed on one or both of these exchanges are what we call 'listings'. Their shares are bought and sold through a broker. Listed companies and stock exchanges are regulated by the Securities and Exchange Board of India (SEBI). SEBI was created by the Government of India to protect the interests of investors. What is the market time? From Monday to Friday (excluding holidays) the market starts at 9 am and closes at 3.30 pm. The pre-opening session is from 9 am to 9.08 am in which the index is adjusted from yesterday's closing position and the same is the opening index. Transactions start at 9.15 am and close at 3.30 pm. Intraday transactions stop at 3.15 pm. Who is a stockbroker? A stockbroker is a link between a stock exchange and a shareholder. Shares are bought and sold. The broker charges a commission for this transaction. The broker must have your demat account for buying and selling shares. An authorized PAN cardholder can start buying and selling shares by opening his demat account with any broker. For this, you have to deposit money in the broker's account from your bank account linked to the demat account. This amount can be deposited online through internet banking or UPI. The demat account can be started by installing the official share broker's mobile app and completing the required documents online. What is brokerage? The commission that is charged on the shares you buy and sell is called brokerage. The rate of this brokerage varies according to the trade of Delivery / Intra Day / Options. Learn more at Share Market Marathi.