Friday, 3 April 2020

Share market's basics

* Is stock market and share market different?

No, the share market and stock market is same thing.

Basic of share market.

Before start trading in shares, it is very important to learn about what the share market is ? And how it actually works? In India there are two primary exchange the NSE (NATIONAL STOCK EXCHANGE) and the  BSE (Bombay stock exchange).


* What is the difference between primary market and secondary market?

When company comes out with an IPO(initial public offer). It is called the primary market. The normal purpose of an IPO is to list the stock in the share market once the share gets listed. It starts trading in the secondary market. Buying and selling shares is largely like buying and selling any other commodity.

*How share priced in the market and who determine the price?

The market determines the price of the share. Normally share price go up when the company is growing faster or getting huge profits.
Price of share is determine by demand and supply.

*What is online trading and what is offline trading?

How to purchase shares offline and how to purchase shares online?

Online trading is all about buying and selling share on the internet sitting in the comfort of your office or your home you just need to log in to your trading account and you can buy and sell shares offline trading is trading by visiting your broker's office or by telephoning your broker.

*Who can buy /sell shares in the share market?

You need to open a trading account with broker and you can buy and sell shares in the market after you opened the trading account.

* How to invest with minimum investment in the share market?

No minimum investment is required .even you can buy only one shares of the company
But you have to pay extra brokerage charges as per rules.

Thank you.

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