Written By : Pitch N Hire
Sat Feb 10 2024
5 min read
Investing in the share market is a great way to generate wealth and save money for the future. An exchange where consumers can purchase and sell publicly traded stocks. It's possible to purchase and sell shares on the stock market using an electronic medium, which makes the process more efficient. In the case of SBI bank shares, for example, the stock market can help a seller find a buyer eager to purchase SBI bank shares. Trading in the stock market may only be done through an authorized intermediary known as a "stock broker," which is vital to keep in mind. The firms in question want to raise funds for their operations by issuing shares to investors. Investors who acquire these shares become part owners of the company and may be eligible for dividend payments. In this article, we will learn in-depth about share marketing and its working.
A share market is a market where shares are openly issued and traded. Unlike stock markets, share markets only enable you to deal in shares. Financial instruments such as derivatives, bonds, mutual funds, and listed company shares can be traded on the latter.
As a basic feature, trading capabilities are available for corporations to use in the stock market. Only equities that are listed on the stock exchange can be purchased and sold. Thus, the stock market serves as a meeting place for buyers and sellers. The National Stock Exchange and the Bombay Stock Exchange are India's two most important stock markets.
The first thing you need to know about how the stock market works is that there are two sorts of stock markets -
A primary share market, also known as the new issue market, is a venue where corporations issue new securities to raise money. Issuer refers to the corporation issuing shares, whereas public issue or first public offer refers to how such shares are made available to the general public (IPO). Investing in these newly issued shares is as simple as logging into your trading or bank account.
After being sold in the main market, a company's new securities are subsequently exchanged on the secondary market. As a result, it is also known as the post-release market. A direct exchange between buyers and sellers is what causes the values of listed shares to fluctuate, as this is a direct market. This is referred to as second-hand share marketing.
The secondary market cannot function without the infrastructure provided by stock exchanges. Stock trading takes place here between investors and traders. These companies are listed on India's two principal stock exchanges:
BSE: BSE is an Indian stock exchange that was founded in 1875 and currently has a market value of over $2.2 trillion. It is the oldest stock market in Asia and the tenth-largest in the world. In order to measure the performance of BSE, investors look to the Sensex, a composite index composed of 30 of the most well-known and frequently traded equities.
NSE: NSE was founded in 1992 with the goal of increasing trade transparency through electronic means. Indian stock markets are dominated by the Bombay Stock Exchange (BSE). The Nifty50 index, which measures the market capitalization of India's 50 largest firms, is the standard by which the NSE measures its performance.
Share marketing in India is governed and monitored by the Securities and Exchange Board of India (SEBI). It is SEBI's major goal to safeguard the interests of retail investors, support the growth of stock exchanges, and regulate the actions of financial intermediaries and investors in the market. As part of its mandate, it is also responsible for performing stock market inspections and drafting rules for the market.
You need to be aware that an investor is not permitted to trade directly on the stock market. People who want to trade stocks on the stock market require an intermediary to assist them in their purchase or sale. Buying and selling stocks and other assets on behalf of an investor can be handled by a middleman, who can be an individual or a business. Those who work in this field are referred to as stockbrokers. For this service, stockbrokers charge either a commission or a fee.
The share marketing basics is to learn the process of share marketing. The first step is to open a Demat account so that your shares can be dematerialized. To purchase and sell stocks, you'll also need a trading account. Trading accounts are used to make the purchase and sell deals, while Demat accounts are used to keep shares in safekeeping.
For instance, if you want to purchase stock in a firm, you can do so through your trading account. Shares in your Demat account are deducted from your bank account, and the money is credited to your Demat account as well.
Your Demat account is debited when you sell stock through your trading account, and the stock is subsequently sold on the market. Your bank account will receive the money from this sale.
Trading in the Indian stock market is restricted to a specified window of time. When it comes to trading hours, the NSE and the BSE are both open from 9:15 a.m. to 3:30 p.m. Monday through Friday, except for national holidays.
In recent years, share marketing has provided numerous job prospects for those with interest in finance. The stock market is always growing and developing. Job openings in the share market are increasing daily in tandem with the market's rise. People from all walks of life are exhibiting an interest in working in the stock market. The following is a list of some of the most important positions in the share marketing field.
If you want to explore the Marketing Associate job description, click here to find out more about the duties and qualifications associated with this position.
Share marketing, while hazardous, has the potential to provide good returns on investments and to assist in the accumulation of wealth. In order to create a trading account, you will need to select a broker. Consider the market's characteristics before deciding how to invest your hard-earned money.
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