What is stock market ?
Market means a place where things are bought and sold, similarly the stock market is a place where many companies are listed and all those companies issue some of their shares. To sell) at different prices.
And then people buy their shares and when the price of the share increases, they sell it and earn money.
But on the other hand, if the price of the share falls, then there is a loss on selling it.
Let us tell you that the share price keeps fluctuating more or less today, if there is something else, tomorrow something else will happen.
Most of the people invest money in the stock market only so that they can get maximum return in the future and they can become rich as soon as possible.
But it is not so easy to understand the stock market, you should know many things or terms like: SEBI i.e. Security and Exchange Board of India, which has a big role in the stock market.
What is share?
Share means your stake in a company. If you have bought shares of a company, it means that you are the owner of some part of that company. Meaning you have some money invested in that company, then if the company makes less profit or goes into profit, then you also have a profit and if the company loses, then you also have a loss.
Suppose there are total 100 shares of a company and 10 of them are with you, then you will be called the owner of 10% of that company. Similarly, the shareholders of any company own different percentages of it.
Today you can buy and sell the shares of someone's company online through a broker sitting at home. Brokers are websites or apps that allow you to buy and sell shares. There are many brokers in India like: Zerodha, Upstox, Angel broking, Sherekhan etc. You can buy and sell any stock by visiting the apps or website of these brokers.
How are shares bought and sold?
Bids are made to buy and sell shares in the stock market, meaning the shares are auctioned.
In this, the seller who is ready to sell the shares at the lowest price and the buyer who is ready to buy the shares at the highest price, shares are exchanged between them and both of them buy and sell the shares from each other. Huh. Meaning the one who makes the highest bid buys the share.
This is called Bid price and Ask price. The price at which the seller is ready to sell the share is called the "Bid Price" and the price at which the buyer is ready to buy is called the "Ask Price".
