Share Market definition
Share market is a type of market where exchange of shares takes place between an indivisual firm (registered stock broker) and buyers (investers). through which stock broker give the authority to hold , buy or to sell the shares whenever he wants . which obeys the rules conducted by SEBI (Security and exchange board of india ) . SEBI is basically statutory regulatory body established by act of parliament to protect the interest of invetors in securities.
What is index in stock market
Index in share market is nothing but statistical measures which shows the up and down trend of the stock market . And to create indexes some stocks are picked up from the NSE and BSE stock exchange to create indexes . where major index of NSE in NIFTY created by combination of top 50 companies on basis of free float market capitalization.
And the major index of BSE if SENSEX which is created by combination of top 30 companies on the basis of free float market capitalization.
- Sensex: index of top 30 companies listed in BSE (Bombay stock exchange )
- NIFTY50: index of top 50 companies listed in NSE (National stock exchange)
Stock of exchange in india:
here are the list of stock exchanges of India
How Share Market Works
Working of share market is pretty simple it gives the opportunity to buyers or sellers to buy or sell the stock at a definite price to make profit . it is much like and auction house where stock market enables buyers or sellers to negotiate the company shares price and make trade in just few steps .
Which make trading more easier than the traditional method . because when trading was started in late century these all things were done on paper which is very inconvenient way according to our generation , sometime paper ticket becomes wet due to which share holder face the problem to cash out this share prices . Even on it’s actual price, And sometime the failed to cash out .
The stock market works through a network of exchanges:
You might also heared about new york stock exchange or the nasdaq , where companies lists shares of their stock on an exchange and this process is called IPO (Initial Public Offering ) .
And where investors spend money on those shares who have high probability to raise up I nthe market and these all decision making tasks done by the share holder and performed by their broker .
How to buy your First share
First you will have to open demate + trading account to hold and trade the shares in the stock market .you can open your demate +trading account with any broker which should be registerd in SEBI and have legal authority to do all trading activities related to share market . such as buying and selling , holding the stocks etc..
As like others who have already earned lot of money form share market in a very short period of time you also will be very excited to take your first share according to your budget and to make profit as much as possible.
Before Buying any share you must have to know some important factors related to trading such as
Types of Orders
1.Market order : buy and sell the share at the current market price.
2.Limit Order : Buy and sell the share at your desired price set the limit price while placing the order with quantity.
3.Stop loss order : Buy and sell the shares but with a stop loss quantity to prevent loss in huge amount of money if occure.
4. Buy stop Order : is entered at a stop price above the current market price. Investors generally use a buy stop order to limit a loss or protect a profit on a stock that they have sold short.
Types of market
1.Intraday trading : In this trading you have to make and exit the position on the same day otherwise your position automatically will be squared off by the broker and whatever profit or loss is made will be delievered tou your demat account .
And the most important point of this trading is you get 10-15x leaverage according to company’s policies .
2.Swing Trading : this trading is valid for some day or for some weeks much much familiar than intraday trading but you get some extra time to hold the stocks to make profit . but here you will not get leaverage this tyoe of trading is also called CNC (cash and carry) mode.
3.Sort Term trading : This type of trading is valid for from some weeks to some months with a fixed target price . whenever it touches your target prices stocks will automatically get squared off.
4.Long term trading : This type of trading can be done for long term investment such as from months to many to many years .
5. 52-week high-low data
6.Company’s Earning per ration
althought rather than this many factors are responsible to rise up and fall down of any prices of any shares in share market , which can cause of losing your invested money in stocks. And if you have done checking all these factors then you are ready to trade the stocks .
What time does stock market open and close
Every share market have it’s own opening and closing time according to their convenient time .
Stock Market Timings in India : Trade in the Indian stock market can only be undertaken during a specific interval of time in India. And all the Retail customers have to perform such transactions through a brokerage agency between 9.15 a.m. to 3.30 p.m. on weekdays. Most investors undertake purchase/sale of securities listed on the major stock exchanges in India – Bombay stock exchange (BSE) and National Stock exchange (NSE). Indian stock market timings are the same for both these major stock exchanges.
9.00 a.m. – 9.15 a.m.
9.15 a.m. – 3.30 p.m.
3.30 p.m. – 4.00 p.m.
Choose broker : the broker is an indivisual firm that acts as intermediatery between the investor and the security exchange like SEBI(security exchange board of india ) in other country ther have different exchange . this is because it only accepts orders from firms or indivisuals who have member of tha exchange board.
So these brokerage facility provided by many firms such as many banks provide these brokerage facility and some private indivisuals also like UPSTOX and ZERODHA .
Preset day Zerodha and upstox agencies have high demand in brokerage facility provider because they give much and much more leaverage on most of the stocks which Is used to help gain more and more profit in the intraday trading .
So here are some best indivisual brokerage service provider in INDIA.