Wednesday, October 27, 2021
HomeShare MarktingWhat is the stock market? How the stock market works

What is the stock market? How the stock market works

What is share market in Bangla?

Share market is also called “stock market”.

If you’ve never heard of this stock market,

Then it will take a short time to understand “what is stock market”.

People are looking for every possible way to earn a little more money.

And, when it comes to earning a lot of extra money in a very short period of time,

Then many people think about the stock market.

However, the stock market or the stock market is never a direct way or means of making money.

This is one of the best investment options, where a lot of profit can be made by keeping or investing money.

Many of us save extra money on household expenses.

And in case of saving money, we use the means of bank fixed deposit, recurring deposit, mutual funds etc.

However, we do not get much returns / interest through these types of investment options.

In this case, the stock market is an investment option where you can invest money and earn more against the investment than other means.

The way to get more returns from the stock market,

In the same way, there is a possibility that your invested money will be completely lost.

So let’s go down to “What is the stock market?” (share bazar in Bengali) and “how the share market works” are not well understood.

Read Also:

What is Twitter Marketing? History of Twitter

What is the stock market? (what is stock market in Bangla)

Simply put, “share market” or “stock market” is the place from where it is possible to buy shares or stocks.

Each share or stock, the ownership rights of the various companies listed in the market which are expressed as units.

I mean, let’s say you bought 100 shares of a company called ABC.

Now it means, “You own 100 units of shares of ABC Company”.

In this way, you become a shareholder of ABC Company and you can sell 100 shares at any time.

When you buy shares of a company, it means investing money in that company.

And since you have invested money in the company,

So, if the company is doing well in the future, then as an investor you will also benefit from the company.

Similarly, if in the future the condition of the company becomes miserable or miserable,

Then your invested money will sink.

So, the stock market is an investment option through which you can invest money directly between different companies.

And, your profit or loss depends on the performance and improvement of the company.

A stock market is an aggregation from which different buyers and sellers can buy and sell stocks / shares of different companies.

It’s a place where people may be making a lot of money or losing a lot of money.

When you buy shares of a company, you also become a partner of that company.

The less money you invest in the company, the more you will own a few percent (%).

How easy it is to make money from the stock market,

That’s the decent thing to do, and it should end there.

Hopefully, you understand what the stock market means (about share market in Bengali).

After understanding what the stock market is, let’s know the other issues related to the stock market.

How does the stock market work?

Stock exchange is the place where stocks / shares are traded.

Various stockbrokers and traders buy and sell stocks here.

Almost every major country has a stock exchange from where it is possible to trade shares.

For example, the name of the Indian stock exchange is “National Stock Exchange of India”.

The name of the stock exchange of Bangladesh is “Dhaka Stock Exchange” and “Chittagong Stock Exchange”.

Thus, almost every major country has its own stock exchange.

Companies that want to sell their shares,

Each of them must first register themselves with the “stock exchange”.

In India, companies have to register themselves with the stock exchange as per the rules and regulations of SEBI (Securities and Exchange Board of India).

SEBI’s job is to monitor and control every company.

SEBI monitors whether the companies are operating in accordance with the law.

What are primary market and secondary market?

Stock exchange has two main parts.

One is the primary market where stocks / securities are created for the first time.

In the primary market, companies offer their stocks and bonds to the public for the first time.

And the new stocks / shares of this new company are released in the primary market by initial public offering (IPO).

Through IPO, a company can list its shares / stocks for the first time.

Secondary market is the market where those stocks / shares are traded by different investors.

Equity shares, bonds, preference shares, treasury bills, debentures, etc. You will find these types of basic products in the secondary market.

How does the stock market work? (Step by step)

  • Come on in, take a look and see how the stock market works:
  • Through IPO, a company is listed in the primary market for the first time.
  • Shares of that company are then released or promoted in the secondary market.
  • This time, it is possible to trade the shares / stocks of the new company in the secondary market.
  • Anyone can buy and sell shares of different companies with different stock brokers / brokerage firms registered with stock exchange.
  • Demat account and trading account will be created for you in case of trading shares / stocks.
  • Your stock broker completes the trading process on your behalf.
  • Today, as much money as you have bought a share / stock of any company, after some time, the price of that share may be more or less.
  • So, your profit is if you can buy shares for less money and sell them for more money.

Why do stocks / stocks fluctuate?

The stock market works on demand and supply.

The price of the stock depends on the market pressure.

When more people want to buy a company’s shares than sell them, then the demand for that stock is increasing.

As the demand for the stock increases, so does its price.

Just like when more people are selling than buying shares of that company,

In this case, it means that the supply is increasing compared to the demand of that stock.

And where there is more supply than demand, the price of that product will definitely come down.

Now when people want to buy or sell more shares of a company,

It depends on different things.

Demand and supply of shares / stocks depend on what?

The main reason why the price of any stock / share is more or less in the stock market is “demand & supply”.

When the demand or purchase of shares of any company is high, its price will go up more.

Thus, more sales of shares means less demand and more supply in the market.

As a result, the price of that share will continue to fall.

But the demand and supply of shares depends on other factors.

Why more people buy more shares of the same company or why people sell more shares of the same company.

The answer to this question depends on a number of factors.

Company share issues

Shares are issued when the company releases new shares to the public.

That is, when they are listed to buy shares from the general public.

And, a limited number of shares are promoted by almost every company.

In this case, if more people agree to buy shares of that company,

Then the demand of that share will increase but the supply will be less.

In this way, the share price will increase and the company will benefit.

Share buyback

This is the process where a company buys more of its own shares so that there is less supply of its shares in the market.

Through share buyback, the company buys its own shares and reduces the total number of shares from the market.

This increases the likelihood that the share price will rise and the company can earn more per share.

Sellers

Sellers are investors who have bought shares at one time or another.

And it is these investors who release the largest amount of shares / stock into the market when they sell the shares.

When a large number of investors sell the same shares, the supply of those shares increases.

As a result, stock prices will fall in the stock market.

Generally, investors sell any share only for profit.

Also, they sell shares when the value of their shares drops drastically.

Other reasons

The various news items associated with the company, however, can affect the demand and supply of its shares in the market.

For example, company earnings report, new product launch, missed targets, death, etc. These types of issues affect the demand and supply of the share.

Moreover, various natural disasters can be detrimental to the company and reduce its market demand.

When to buy shares in the stock market?

  • What is the stock market, you may have some idea about this.Now, before investing in the stock market, you need to have a general knowledge of the stock market.You can learn a lot about the stock market by watching different videos on YouTube.

    When to buy shares, the answer to this question can be a lot.

    Buy when the share price of a company is very low and there is a possibility that the price will increase in the future.
    You have to look at the background of the company you are thinking of buying shares from.
    It is seen that at the end of the month, the share price continues to rise and in the meanwhile the price decreases. So, the best time to buy shares is in the middle of the month as mine.
    The company broadcasts various bad news related to the company almost on the last day of the week (Friday). So, that bad news of the company has to be reflected in the market by Monday. In that case, the company’s share price is likely to be slightly lower on Monday. So, I would advise you to buy shares on Monday.
    It is important to think about what kind of companies you will invest in.
    Keep an eye on when a company’s share price has risen or fallen in the stock market. After keeping an eye on this for a while, you will have at least some ideas.
    There is a lot of risk in the stock market, no one can say when the shares of a company will go down completely. So, only invest in this market when you are financially strong or have extra money.

How to invest money in the Indian stock market?

In the past, investing money in the stock market or buying shares was a lot of trouble.

However, now you can easily share trading through any online or offline.

To buy shares from the stock market, you will first need a Demat account.

Just as we keep our money in a bank account, we keep our purchased shares in a demat account.

If you are thinking of investing money in the stock market, then this Demat account is very important.

There are many stock-brokers online and offline with which you can create this demat account.

The amount of profit you will get by share trading will be credited to your demat account.
The bank account must be linked to your demat account.
In this way, you can transfer the money of your profit or the money earned by selling the stock directly to your own bank.
To create a demat account you may need documents like “address proof”, “ID proof”, “TAX ID (PAN card)”, “bank canceled check”, “income proof” etc.

There are basically two stock exchanges in India, “Bombay stock exchange” and “National stock exchange”.

This is where the shares are traded.

Stock-brokers are members of this stock exchange and through them we can trade in the market.

We cannot buy shares directly in the stock market.

So to put it bluntly, if you want to invest in the stock market,

Then first contact a stock broker.

It is important to create your own demat account with each of the documents.

Now you can buy and sell shares yourself or with the help of a broker.

Let me tell you, there are many online platforms through which you can easily create your own demat account online.

But I can’t say much about their safety and you have to check it yourself.

You can trade shares by creating a demat / trading account online using the Groww platform.

Some of the important words associated with the stock market

Now we come to the part where we talk about the middle ground.

Share/stock

Share means share or partner. When we buy a share of a company through the stock market as a unit, then that share is called share / stock.

Stock exchange

Stock exchange or exchange of securities is the place or service from where stockbrokers and traders are trading various financial securities such as shares of stocks, bonds etc.

IPO

“Initial Public Offering (IPO)” is the process by which a company’s shares are launched or promoted in the primary market for the first time.

Demat account

A demat account is an account that is very important and important in stock trading.

Here, your shares or other financial securities (shares, bonds, government securities, Mutual Funds, Insurance) are stored in electronic format.

Face value

The price at which the shares of any company are listed on the stock market for the first time is called the face value of the shares.

Close price

There is a limited time to trade in the stock market every day.

For example, trading in the stock market can be done from 9 am to 4 pm.

In this case, the closing price is the closing price at which the stock is traded at the end of the trading period.

Our last word,

So friends, I hope you have a good understanding of the share market (share market).

What is share market in Bengali? What is share market in Bengali?

However, try to understand the issues involved with a good mind.

If you currently have some general documents,

Then you can easily create a demat account and buy shares.

If you have any questions about what the stock market is,

Then let us know by commenting below.

Also, if you like our today’s article,

Then you must share the article.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments