Share market is a place to buy and sell shares of public listed companies. Investors who believe the economy is growing will invest in stocks because a strong economy helps companies improve their earnings.
Pay the lowest price and get the greatest value
By buying shares in a company you are investing money in that company with the hope that the company may grow in the future .
The price of your share will also increase, and thus, you can get profit by selling your shares. A share represents a unit of ownership of a company from where you bought it. Most companies require funds for their development so it sells a part of their ownership to the public.
Most of the stock trading in India takes place on its two major stock exchanges- the Bombay Stock Exchange(BSE) and the National Stock Exchange(NSE). The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace.
It is very important to educate yourself before investing in the stock market. In order to buy a share, an individual should have a savings bank account as well as a Pan card. One should reach out to a brokerage firm as they are experts in the fields and can guide you in preparing necessary documents. You must open a Demat account where your shares will virtually reside after purchase. Depository Agency can help you in the opening and maintenance of the Demat account.
The Share market is divided into 11 major sectors representing the key areas of the economy.
Financial Sector- it comprises of a broad range of industries such as banks, investment companies, insurance companies, and real estate firms.
Utilities-The The utilities sector refers to a category of companies that provide basic amenities, such as water, sewage services, electricity, dams, and natural gas.
Consumer Discretionary- consists of retailers, media companies, consumer service providers, apparel companies
Consumer Staples-The The consumer staples sector consists of food and beverage companies as well as companies that create products consumers are unwilling to cut from their budgets.
Energy-The energy sector consists of oil and gas exploration and production companies, as well as integrated power firms, refineries, and other operations.
Healthcare-The healthcare sector consists of biotechnology companies, hospital management firms, medical device manufacturers, and many others. In general, the sector is considered to be both a growth opportunity and defensive play since people will always require medical aid.
Industrials- The industrial sector consists of aerospace, defense, machinery, construction, fabrication, and manufacturing companies.
Technology-The technology sector consists of electronics manufacturers, software developers, and information technology firms.
Telecom- The telecom sector consists of wireless providers, cable companies, internet service providers, and satellite companies, among others.
Materials-The The materials sector consists of mining, refining, chemical, forestry, and related companies that are focused on discovering and developing raw materials.
Real Estate-The real estate sector consists of companies invested in residential, industrial, and retail real estate. The main source of revenue for these companies comes from rental income and real estate capital appreciation.
“Warren Buffett of India”
Rakesh Jhunjhunwala, is an Indian billionaire, investor, trader, and chartered accountant. He made his first profit in the company Tata Tea where he bought 5,000 shares of the company at INR 43 and sold them for INR 143 per share.
He stated that he looks at growth, valuation, liquidity, and the company’s cash flows. He stated that he has made his way to success by making the wrong decisions and learning from those decisions.
Online Trading as a profession
Online trading can be as simple as online shopping but it requires an enormous amount of research and involves risk of capital as well.
As far as Indian stock exchange is considered, the main career opportunities are- risk analyst, market researcher, SEBI registered investment advisor, and broker in some trading firm.
Brokerage firms are providing employment to numerous brokers across the country . Brokerage companies typically receive compensation by means of commissions or fees that are charged once the transaction has successfully completed.
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