Stock Market For Beginners

Stock market presents a good opportunity to make money. Share markets are governed by the stock exchanges. NASDAQ, BSE, and NSE are among some of the big stock exchanges. They deal in shares and we make profit buying and selling shares.

Why invest in shares? Usually people invest in Land or Real estate, Gold or Fixed deposits. These investments do give us some profit and all those investments are safest investments. When investing we have three most important points to consider 1 security for the investment 2 Returns from investment 3 Liquidity. The third point drives us to shares and to an extent second point too. In share market we can sell our shares anytime and the returns are higher if properly controlled.

What stock market or stock exchanges offer us? They offer us a collection of shares from different companies for us to buy and sell. In share markets we can make money from different modes. We can make money by buying shares at a lower price and selling at a higher price when the rates are higher. This income is called capital gains and which is taxable in India. We can make money from dividends which companies declare. We can make money from shares we don't have possession too. How? For example if we have strong reasons to believe that a certain company's market price is going to be affected we can sell the shares we have in possession and also sell more shares which we don't have possession. For example, a company XYZ which has a market value of 500 and we have 500 shares of that company. We believe that a Government regulation which is going to be announced is going to affect the market price of shares What we do here we sell 1000 shares out of which we have only 500 shares in possession. The remaining 500 shares we buy later in the evening at 450 and we make a quick profit in the losing shares 25000. This shows us we must have active presence over the happenings in the stock market.

Learning and making money on share market is easy but it requires your active involvement. Without active involvement and knowledge you may not have a good career on stock market. Learn more to have a great career.

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