Come on, let's talk about the stock market. What is a stock market? Why is it in place? How does this work? What are its advantages and disadvantages? And how to invest in it
Let's find out more about stock markets in this article Stock market, share market, or equity market - all three mean the same. These are the markets where you can buy or sell a company's stock. A certain percentage of that profit can also be given to you. If the company loses, a percentage of that loss can also be borne by you. Invest another 10,000 rupees and give him a 50-50 partnership So, no matter what your company gains in the future, 50% will be yours. 50% of it could be your friend. In this case, give 50% of the shares to your friend in this company. The same thing happens on a large scale in the stock market The only difference, instead of going to your friend, go around the world inviting them to buy shares in your company.
history and purpose of stock market
400 years ago, In the 1600s, there was a Dutch East India Company, such as a British East India company. There was a similar company in the Netherlands today, known as a Dutch East India company. Of them to find new places and to trade in faraway places The ancient voyage was more than a thousand miles from the ship There was a great deal of money needed for this No one had much money at that time inviting people in the community to invest in their ships When these ships travel long distances to other countries and bring back treasures from there They were promised a share of these treasures/money in the end But this was a hazardous thing because, at that time, more than half of the ships failed to return. Anything can happen to them.
So investors see the risk of this business So, instead of investing in one ship, they prefer to invest in their 5-6 so that at least one of them has a chance to go back One ship that used to approach many investors for money this has created a stock market. There was open bidding for ships in their ports. Ports are the places where ships go out. Gradually, the program was successful because the financial cracks facing companies were added by ordinary people. And ordinary people get a chance to earn more money. It will help if you read in the history books about how rich the English East India company was and the Dutch East India company in those days. Today, each country has its own stock exchange, and each country relies heavily on the stock market.
what is a stock exchange
somewhere, that building where people buy and sell corporate shares. The market can be divided into two types- The main market and the secondary market The primary markets where companies sell their shares companies decide what their actual stock prices may be. because much depends on demand People are willing to pay how much a company's shares If the Company's value is 1 lakh rupees,
it sells 1 lakh of its shares and offers shares for 1 re per share each. If its demand is high and more people want to buy its shares, the company will obviously sell its shares at a higher price. What companies do these days determines the distance. Low and high price They decide to sell their shares within that range.
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