What Is Stock Market ? Should You Invest In Stock Market ?

Stock Market :- 

     Stock Market or Share Market or Equity Market these three are same , basically stock market is a place where you can buy or selling a companies(in case of primary market) share . A share of a company is like some part or few % ownership of any company , this totally depend of company polices and buying shares of any company simply means that you buying some % ownership of that company .

Now taking a simple example of buying share like if you want to do a startup of your business and your friend also want to join you: your startup initial amount is 10,000 rs , now you invest 5,000 rs and your friend is also invest 5,000 rs in your startup so we can say that 50% share of your business is belongs to your friend and 50% is belongs to you. 

History Of Stock Market  :- 

The history of stocks was very old , 400 year ago , there is a Dutch East India Company like East India Company in India so this company invite people to invest there money into there ships to discover the world or to trading through these ships , East India Company and Dutch East India company was the most richest company of that time  , because people comes to invest there money into there trading but in that time people thought that invest in only one ship is  not a good idea after that people invest there money not in only one ship apart this they invest there money into 5-6 ships . 

Stock Exchange :-

There is market where a company or a person sell or buy there shares , there is two types :-

Primary Market:- This is a market where a company sells their shares , it depends on the demand : in currently company propose a range of value , there is a minimum and also a maximum values of shares .

Secondary Market:- This is a market where a person sells their shares , in this market a person buy shares from a company and that particular person are again sell that share to another person . 

Every share of a company has equal value , it depends on that company and a company would not sell there 100% share of company because in that condition every share holder of that company has equal right to take any decision regarding company , the CEO of  a company has majority of shares and that have more power to take decision on that company . 

For example around 60% share of facebook are retained by Mark Zuckerberg  

India Stock Exchange :- 

There is two popular stock exchange in India :-

• Bombay Stock Exchange :- It has 5400 registered company .
• National Stock Exchange:- It has 1700 registered company .  

To see the share of any company , where the share of company is moved up or down there are measurement to measure this movement of share that is SENSEX and NIFTY 

SENSEX shows the average trend of top 30 companies of Bombay Stock Exchange 

NIFTY is national+fifty , it shows the average trend of top 50 company of National Stock Exchange 

Should You Invest In Stock Market ? :- 

so guys its totally depend upon you , on your research about that company which share you want buy , but you should never directly invest in share market its very risky for you , choose any good company for buying their share never judge that company on there previous record deeply learn about that company before buying their shares . 

THANK YOU GUYS 

VISHAL SHARMA