The stock market is a market where shares of companies can be bought and sold. Like any other market, in the stock market, the buying and selling people meet each other and confirm the deal by negotiating a price.
Earlier, the shares were traded and traded by oral bids and the buy and sell deal was done by word of mouth. But now all this transaction happens through computers connected to the stock exchange network. This facility is also available on the Internet. Today the situation is that those who buy and sell do not even know each other.
Nowadays many banks like ICICI, HDFC, KOTAK MAHINDRA, Bank of India, etc. offer demat service. The annual fees for such an account range from Rs 500-800.
Stock markets are an important part of the economy of any developed country. Just as roads, rail traffic, electricity, water are most important for the development of a country, village or city, in the same way stock market is necessary for the development of the country’s industries. Capital is required to run the business of the industry and they get it from the stock market.
Through the stock market, every common man can invest in big industries and can expect higher return on their investments. With such participation, he can become an equal share in the profits made in big industries.
Suppose, if any citizen feels that Reliance or Infosys is going to earn huge profits in the coming time, then he can become a partner in this profit by buying shares of these companies. A good stock market takes care that any investor gets an equal opportunity.
Stock Market Terminology
The term Outlook is used when asking questions such as what is the future of the company / institution or country or what is the probability of it.
On the basis of how many orders are left in the order book of the company, the work result, future and stability of the company can be estimated. If the company does not have orders or there are not enough orders, such a situation is not considered good for the company, whereas the situation of a company that receives continuous orders and places a plethora in the order book is considered strong.
Those stocks which are considered best for buying or those which are considered to be the best price to buy are called “ Best Buy ”. These companies are superior or they are likely to increase in future price from their current price, such scrip or share is counted as best buy.
In simple words it can be called risk. When an investor invests in a company, it is said that the said investor has taken exposure in the company. Exposure is not only taken in the company but also in the entire industry or economy. When an investor invests in another country, it is said that he has taken exposure ie risk in the economy of that country or in companies, industries of that country.
This term is used for strong companies in the stock market. The intention of a company to be blue chip is that its shares are preferred shares for investors. In these types of companies there are also many ups and downs and there is plenty of attraction among investors.
After allotting shares to applicants in a public issue, those shares are listed on the trading list of the stock market. This is called a listing of shares.
Like profit booking, booking of loss means loss booking in the market, which is called stop loss and if you do not do it at the appropriate time, the loss increases.
Suppose a stock is worth Rs 50. And the rate was reduced to Rs. 32. Left and if the trend of decrease in it is shown in the future, then the investors will get Rs. 32. You should limit your losses by setting your stop loss while placing your order.
It simply means the “ driving force ” or driver of the market. In market terms, a tree is needed to lift the market high. The stock market operates on the basis of one or several factors, it can move upwards or downwards, but a trigger point is necessary to give momentum to the market.