What is Share Market

The Share Market is a platform where people buy and sell stocks. India has two main stock exchanges: the Bombay Stock Exchange (BSE)  and the National Stock Exchange (NSE). For both investors and companies share market plays an important role as it provides access to capital and the opportunity to join the growth and success of a company. In this blog, we will explore what is share market, the types of share market in India, and a lot more. 

Types of Share Market

The stock market explained simply is a place where buyers and sellers trade shares of companies based on their value. The following are the types of share markets in India.

• Primary Market: Primary Market refers to a market where new securities are listed for the very first time. In the primary market, a company issues new shares to the public to raise its capital. The primary market is also referred to as the “new issue market.” 
• Secondary Market: Once the shares are listed on the primary market, they are exchanged in the secondary market. These shares are traded on popular stock exchanges like the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE) in India.

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How Does Share Market Work

Now that you know what is share market, let’s find out how it functions. Understanding how share market market works is important for anyone who is looking to grow their capital with time. Following is a guide on how the share market works. 

• The share market is a great platform that helps companies raise their capital by selling their shares in the primary market. 
• Investors then buy and sell shares in the secondary market on popular exchanges like the NSE or BSE.
• There is stock market fluctuation based on supply, demand, company performance, and market sentiment.
• The execution process of buying and selling orders for investors is done by the brokers who act as intermediaries, executing buy and sell orders for investors.
• To ensure transparency and equity the Securities Exchange Board of India oversee the market operations. 

How to Invest in Share Market

The following are the steps on how to invest in a share market.

• Step 1: Open a Demat and Trading Account: 
  Before investing in the share market it is important to have a Demat or Trading account. A Demat account holds your shares in an electronic form, whereas a trading account makes the process of buying and selling shares easy. 
  Click here to Open A Demat Account. 
• Step 2: Select a Stockbroker: 
  Select a reliable stock broker or online trading platform to execute your trades.
• Step 3: Research Stocks: 
  Before investing in any stock it is important to do your research on the performance of the company, market trends, and the stock fundamentals. 
• Step 4: Start Small: 
  As a beginner, you should begin your investment journey with a small amount. 
• Step 5: Place Orders: 
  By using your trading account buy or sell shares based on your research and investment goals.
• Step 6: Monitor Your Investments: 
  Keep track of how your portfolio performance is going and then adjust your strategy accordingly. 

Conclusion
A share market is one of the most dynamic and growing markets, which is essential to the economy. It provides an opportunity for companies to obtain the required capital while investors look for ways to grow their wealth. The share market is mainly divided into two major markets: the primary and the secondary markets. Purchasing shares in a share market involves a lot of consideration as well as careful observation. In some way, it might appear quite complicated to understand what is share market, but once you have the right information as well as the right approach you may participate in it. One can also use an online trading app in order not to stay updated on the fluctuations in the market.