Hello friend in this article we will tell you that how to invest in share market and also tell in hindi what are course and and book releated to them and stay reading for more news in hindi.
In this you can grow and lose your money in seconds by your decisions
Making money in equities is not easy. It not only requires patience and discipline but also a great research of the stock market .
1. Understand the basics of stock market
The reality is that investing in the stock market carries risk, but when approached in a disciplined manner, it is one of the most efficient ways to build up one's net worth.
A stock is a financial instrument that represents ownership in a company or corporation . Stocks are also called shares or company's equity.
Stock ownership implies that the shareholder owns a slice of the company equal to the number of shares held as a proportion of the company's total outstanding shares.
Let's we understand the shares by example let's assume that I purchased the equity or common stock of xyz company so I have the right to say in corporate meetings like AGM but in preferred stocks we can't give our opinions to company.
2. Why companies issues shares ?
The Biggest companies like Facebook (META),Google etc have their expenses like office, employee's salary etc But the companies which is starting now they need massive amount of capital. In order to rent a office , hire employees, buy equipment and raw materials etc but there is no sales at that time . These resources requires significant amount of capital, which is depending on the scale and scope of the bussiness .
The companies need capital so, in order to raise a capital we have two choices , we can sell shares of company which is called Equity Financing or we can borrow money which is called Debt Financing .
The debt financing have risk because the company sales is less so the profit is less and the loan plus interests make financial burden over the company.
3.What is the difference between the trading and investing in the stock market
When it comes to wealth creation in equity market, investing and trading are the two genres of the field.
Trading is a method of holding stocks for a short period of time. It could be for a week or more often a day! . Trader tales the short time performance of the stock.
Investors invest their money for some years, decades or for even longer period.
Tradering is skill of timing , when the stock price goes up the trader may sell the stocks .
Investing is the skill of making wealth from the stock and dividend in long term with higher returns .
In trading there is more risk than investing because in trading there we grow money in short peroid with higher returns and the price goes up and down where as investing has more advantage because in investing we choose the stocks which have potential to grow and give compound interests and dividend in long peroid of time .
In trading the trader must have the knowledge of trends to get higher returns with the trend but in investing we have to analyze the stocks like business fundamentals and sales,profit and many more skills which are necessary to run a business .
In trading , sometimes we miss the right time to sell stocks which leads to loss in the money .
4.The difference between stocks and mutual funds.
Stocks and mutual funds are two of the common investments . They are completely different financial instrument that are sometimes misunderstood as the same.
Stock are a representation of company's share capital which is exchanged on the stock market . Stock also represents that you are the shareholder of company.
Stock are an investment in a single company , while mutual funds hold many investments like hundreds of stocks in a single fund .
In the general sense , mutual funds are a collective investment option with the less risk with higher returns . It pools money from several investors and put it in different bonds, securities, stocks, gold, FD's etc of profit generating companies . It is the investment for the future returns .
In mutual funds , we have to give our money to mutual funds companies and from this money, they invest in many investment.
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