Investing in the Stock Market: Types of Shares and How to Get Started

 What is the Stock Market? Insights into the Indian stock market, including SEBI's role, share types, trading strategies, and starting investments.

Introduction: 

As we know people know the share market by different names and that share directly means “share”, in the stock market the share in a company can be called a share. For example, suppose a company has issued one lakh shares. On the other hand, if an individual purchases that many offer in that company, he turns into the proprietor of that number of offers in that company. For example, if a person buys 40,000 shares out of Rs 1 lakh in a company, his share in that company will become 40%. And he will become the owner of that 40% share.    Stocks show a person's stake in any company. And whenever that person wants, he can sell his shares to others or buy shares of another person.

SEBI's Vital Role in Regulating Stock Market and IPOs:

The value of shares or stocks of companies is recorded in BSE. The value of stocks of all companies keeps increasing or decreasing according to the profit potential of the company. The Securities and Exchange Board of India i.e., SEBI, manages to maintain the overall transparent functionality of the entire stock market system.

Only when SEBI gives permission to a company, a company can issue its Initial Public Offering. Without the permission of SEBI, no company can issue an IPO.

What does the stock market mean?

This is the Indian platform called Stock Exchange where the stocks of listed companies are publicly traded during the market hours. The essential market is where organizations issue offers to the overall population in a first sale of stock (Initial public offering) to raise capital.

When does a company appear in the stock market?

Listing Requirements and Investor Information:

To be listed or visible in the stock market, a company has to enter into several written agreements with the exchange. Under that agreement, the company has to give information about its every activity to the market from time to time, this information also includes information That affects the interests of investors in such a way.

Stock Value Instability and SEBI's Posting Consistence Implementation:

The company is evaluated on the basis of the information given by the company and on the basis of this evaluation, the prices of the shares of that company keep fluctuating due to increase and decrease in demand. On the off chance that any organization doesn't observe the guidelines of the posting arrangement and is viewed as at fault for disregarding the standards, then, at that point, a move will be initiated by SEBI to eliminate it from the trade.    

Listing Requirements and Criteria for Stock Exchange Inclusion:    Aside from this, an organization needs to go through a great deal of things to show up in the securities exchange. Such as the complete record of the company for the last 3 years, the company's market share is above Rs 25 crore, and the capital of the company applying for IPO should be at least ₹ 10Cr. And for FPO ₹ 3 CR. There should be. Aside from everything, numerous different things are likewise thought about when the organization is recorded.  A company has to follow several strict rules to be listed in the Index.

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How many types of shares/stocks are there?

There can be many types of shares and different people define them differently. But we can divide the shares mainly in 3 forms. Let us know the types of share:-

1. Common Shares:

Any person can buy these types of common shares at any time. And can sell as per need. 

2. Bonus Shares:

When a company makes good profits and that company wants to give some part of it to its shareholders. She does not want to give money in return and if she gives shares, it is called bonus shares.

3. Preferred Shares:

This share is brought by the company only to some special people. When a company needs money and wants to raise some money from the market, then the shares it issues will give the first right to buy them only to certain people. Like employees working in a company. Such shares are considered very safe.

How to buy stocks:

One has to first decide whether to buy shares by himself or take the help of some good and trustworthy broker. After that can we proceed further?

If you take the help of a broker, then first of all you will have to open your account, which is called a Demat account. Which you can open through your broker. There is a lot of benefit in buying a stall through a broker, firstly you will get good guidance and secondly, you will get complete information about the stock market. Brokers take money or a share of the profit in the stock to help you and provide information about the stock etc.

There are only 2 stock exchanges in India. NSE and second BSE. Stocks can be bought or sold only in the companies that are listed in them.

Whenever you buy and sell any share, the money comes to your demat account only. Your demat account is linked to your bank account. You can easily send money from your demat account to your bank account.

If you want to invest your money in Share Market then you can create your account on Discount Broker “Zerodha”. In this, you can open a Demat Account very quickly and easily and also buy shares in it. Its link is given below.

What is Trading in the Stock Market?

The word “Trading” is very popular and widely used in the stock market. The meaning of this word in Hindi is “Business”. Whenever we buy any good or any service with the intention that after keeping that good or service for some time, we will earn profit by selling it, then this work is done. Can be called “Trading”.

Similarly, Anybody's main objective in the stock market after having bought stocks is to make a good profit by selling those stocks after the price goes well above the buying price.

Conclusion:

The stock market is a crucial financial tool where individuals can buy shares or stocks in companies, owning a portion of those businesses. It operates transparently, with SEBI ensuring companies meet requirements. The market offers various types of shares, including common, bonus, and preferred shares. Investors can trade independently or with brokers, by opening a Demat account. The National Stock Exchange and Bombay Stock Exchange are the primary stock exchanges in India.

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