BEGINNERS ABOUT STOCK MARKETING@LEARNINGMORE

 What is a stock market?

the stock market is a stock exchange where stock brokers and traders(investors) can buy and sell shares of publicly held companies

a stock exchange is an exchange of buying and selling of equity stocks, bonds, and securities

why the stock market?

investors who want to make huge returns and are ready to take risks can enter the stock market

investors can diverse their money to create wealth through trading, investing in stocks, bonds, future, and derivates

how to start in the stock market?

any investor who wants to enter into stock market needs to open a “demat account “

to open a demat account following documents and details are mandatory

1 Aadhar card

2 pan card

3 bank account

4 mobile number

5 e-mail

An investor can be a trader or investor after opening a demat account

Before you start investing you must know about companies and how companies entered the stock market and listed on stock exchanges

How companies are listed in the stock market?

companies can list themselves in stock market by issuing an IPO(initial public offer)companies have to comply with SEBI regulations

companies can list their companies in two exchanges

1.   NSE (NATIONAL STOCK EXCHANGE)

2.   BSE(BOMBAY STOCK EXCHANGE)

1. companies listed till now in NSE AROUND 1600 companies

2. companies listed till now in BSE AROUND 5300 companies

Classification of companies based on market capitalization?

1 LARGE-CAP STOCK

2 MID-CAP STOCKS

3 SMALL-CAP STOCKS

 

1 LARGE-CAP STOCK

Large-cap companies often called blue-chip companies maintain large reserves of cash at their disposal. Large-cap companies allow investors to get higher dividends in comparison to mid-cap and small-cap companies and it will grow long-term investors with their capital in the stock market.

LARGE-CAP COMPANIES WHOSE MARKET CAPITALIZATION IS MORE THAN 20000 CRS

2 MID-CAP STOCKS

MID-CAP COMPANIES WHOSE MARKET CAPITALIZATION IS BELOW 20000CRS AND ABOVE 5000 CRS

Mid-cap companies are similar to blue chip companies .it has moderate risks, steady growth, and stability in the market with good track records. In the long term, these stocks give good results

3 SMALL-CAP STOCKS

SMALL CAP COMPANIES WHOSE MARKET CAPITALIZATION IS BELOW 5000CRS

Small-cap companies have huge volatility and risky trades

Investors who are not thinking about dividends and are willing to stand during price volatility and can make significant gains in the future can invest in small-cap companies .investors can buy these stocks during the initial stage of the company at a very low price and also no guarantee about future how these companies will perform in future.

 

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