What is the generic image that people have in their minds about the stock market? A fancy place to make a copious amount of money! A way out from the current sub-standard life! Getting exorbitantly rich in a short time! Whatever the answer be, all of them have the gist of making money. And that’s fair as we invest money in the stock market to earn money. But investing is not enough. Knowing the right methods is essential to make money or things can go south.
Stocks are components of publicly traded companies that are available for sale. People buy these just to sell them later at a higher rate. The prices of these stocks are affected by different factors such as buying and selling of these shares, recent announcements relating to the company, brand value, or there is umpteen number of factors involved.
Stock Trade: The Procedure
People can buy/sell stocks by opening a Demat account. These accounts can be opened on stockbroker platforms either offline or online. In the case of an offline stockbroker, every time that trade is to be made the customers need to call up the brokers and instruct them to make a transaction. In the case of online brokers, customers can directly process their transactions from their phones or computers, here too the order goes to the broker first. But here the transaction is almost immediate. Today people prefer online trading over offline. In exchange for the services provided, these brokers charge a certain amount of fees known as brokerage. This is a minuscule amount of fees charged against each transaction. One such online trading platform is 5paisa it has exemplar services. Virtually zero records of error in transactions and many such achievements.
Stock Exchange: What are They?
The shares that people purchase are listed in different stock exchanges. Stock exchanges, if put in simple words, are slates on which stocks are written. It can so happen that one stock is listed on two different exchanges. But usually, there is not much difference, just a bit of price difference to avoid confusion of being identical. There are multiple stock exchanges present in a country, sometimes even in a city. For example, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Both of these stock exchanges are located in Mumbai.
Group of stocks is given certain names. Like NIFTY50, NIFTY NEXT 50, SENSEX, etc. These are benchmark index that showcase the performance of top stocks traded from a total of all the listed stocks.
Factors affecting the stock price
Factors that affect the price of a stock are different. Some stocks are driven purely by the buying/selling by the common public. Some stocks are heavily inflated by the excess cash flow provided by hedge funds, big level stock traders, or investment banks.
Conclusion:
The stock market is a risky platform but is equally lucrative, tempting, and money flower. The earning potential in the stock market is unlimited. But given the right skill set then only these things are achievable. One wrong estimation in trade and the monetary loss can prove to be fatal. 5paisa is the best broker that provides you with exemplar services.
