WHAT IS STOCK MARKET

WHAT IS STOCK MARKET

WHEN I WAS STUDYING 8^TH EVERY DAY IN TV NEWS THERE WILL BE A INFORMATION ABOUT SEN SEX.. I ASKED MY SISTER STUDYING BCOM, WHATS IS STOCK MARKET?. SHE TOLD ME THAT STOCK MARKET IS STOCK MARKET …

YES… NOBODY CAN CLEARLY EXPLAIN WHAT STOCK MARKET IS.

WE CAN SPEAK ABOUT THIS EVEN FOR HOURS WITHOUT ANY CLARITY

ONLY WAY TO FIND THE TRUTH IS PRACTICAL …ONLY WAY YOU CAN REALIZE THE TRUTH IS PRACTICAL. BASICALLY I AM CATERING STUDENT. FOR MAKING A BREAD, THERE IS A HUGE PROCESS THAT’S CONFUSING BUT WHEN I WENT TO TRAINING IT SEEMS TO BE VERY VERY EASY. THEORY SHOW ME JUST OUTLINE BUT PRACTICAL SHOWED ME COMPLETE PICTURE.

BUT THEORY IS BASEMENT FOR PRACTICAL SO NOW LETS SEE WHAT IS STOCK MARKET IN THEORY FORM…………….

MARKET:

WE ALL KNOW WHAT IS MARKET .THERE WILL LOT OF SELLERS OF VARIOUS PRODUCTS GATHER TOGETHER AND ALSO LOT OF BUYERS GATHER TOGETHER. IF A DEAL MADE THEN THEY WILL EXCHANGE MONEY AGAINST MATERIALS. THERE WILL BE BROOKER WHO WILL CONNECTS BUYER AND SELLER I GETS COMMISSION FROM BOTH ENDS.

STOCK MARKET:

SAME WAY IN STOCK MARKET THERE IS LOT N LOT OF SELLERS AND BUYERS WILL COME IN A MARKET(EXCHANGE) THEY ALL CONNECTED BY EXCHANGE THROUGH STOCK BROOKERS.PRICE FLUCTUATIONS DEPENDS UPON PRODUCTS(STOCK). IF GOOD NEWS ABOUT A STOCK THEN IT WILL BE ON DEMAND OR BAD NEWS THEN IT WILL BE SOLD HARD.

IN INDIA THERE ARE 2 MAJOR EXCHANGE

1. NSE (NATIONAL STOCK EXCHANGE )
2. BES(BOMBAY STOCK EXCHANGE)

BSE: IS THE OLDER ONE IT HAS BEEN OVER 100 YEARS

NSE: JOINED LATER WITH BSE . NSE IS FAMOUS FOR FUTURE AND OPTIONS

TO GET DETAILED(HISTORY ETC) ON BOTH VISIT THEIR OFFCIAL WEBSITE

1. www.bseindia.com

2. www.nseindia.com

SHARE:

WE ALL KNOW WHAT IS SHARING. IN BUSINESS WE CALL AS PARTNERS.IF I AM BECOMING ONE OF THE PARTNER IN A BUSINESS WITH “XYZ” COMPANY. I AM INVESTING 20% OF CAPITAL. AT THE END OF THE YEAR TOTAL REVENUE OF THAT BUSINESS IS 1 LAKH THEN MY RETURN OVER INVESMENT IS 20 THOUSAND. SAME WAY. INDIA LEADING BIG COMPANIES OF ALL SECTORS CONVERTS THEIR TOTAL INVESMENT IN SHARES AND SELL AROUND 50% OF THEIR SHARES THROUGH EXCHANGE

IF WE BOUGHT EVEN 1 SHARE THEN WE ARE THE PARTNER OF THAT COMPANY AND WE WILL GET INCOME FOR THAT PARTICULAR SHARE ACCORDING TO THAT COMPANY’S REVENUE. WE WILL GET DIVIDEND AND BONUS AS REVENUE FOR BUYING THAT SHARES.

FIRST TIME COMPANY SELL THEIR SHARES THROUGH “IPO”(INTIAL PUBLIC OFFER ) AFTER THAT THEY WILL LIST THEIR STOCK IN EXCHANGE

THEN THEIR STOCKS WILL BE TRADED DAILY ACCORDING TO MARKET CONDITIONS

SOME BIG GIANTS GAVE A HUGE MONEY FOR BUYING THEIR SHARES

EXAMPLE: IF U HAVE BOUGHT INFOSYS AT THE TIME THEIR “IPO” FOR JUST 10,000 RS THEN IN 2007 YOU WOULD HAVE 2.5 CRORES AS TOTAL VALUE MY GOD…………. 2000+ TIMES RETURNS IN JUST 14 YEARS. THIS IS

STOCK MARKET UNBELIVABLE BUT TRUTH. SAME WAY THERE ARE SOME STOCKS THAT GONE “0”(ZERO) WE HAVE TO KNOW COMPANY BEFORE INVESTING