Stock Market is also called Share Market or Equity Market, where buying and selling of shares is done through Stock Exchange(NSE/BSE).
What is a share or stock or Equity, Building a business needs money, expanding the business needs more money, so the more money needed is collected from a long procedure called IPO(Initial Public Offering), where the founders/promoters of the company collect some money from public(Investors) in exchange for the partial/fractional ownership/share in the company.
Suppose a company has 1000 shares and an Investor has 100 shares implies the Investor has a 10 percent share in the company. So an investor is like a shareholder or partner in the company.
Share has generally two main values, one is face value, which is decided when company is issuing shares, it is the original price of the share and the other is market value, it depends on the demand for the stock in the stock market. Suppose a stock has a face value of Rs. 10 but it’s market value can be 400.(One more term Book Value is there, skipping to not clutter with more information).
So Stock Market contains a list of shares from businesses belonging to variety of sectors. Investors are the buyers or sellers of the shares with the exchange of money.
When an investor want to buy a stock implies he can buy it through any stock broker, at only market value.
Market value fluctuates through out a particular stock life time depending on the supply and demand.
An investor has to analyse the business, it’s demand and market conditions before buying a stock, which is an investment in that company.
Disclaimer:
Markets are subject to market risks.Stockvedam don’t advise or endorse any stock. Stock Market investment should be done with investor discretion. Stockvedam is not responsible for any losses incurred by the investor.The content at www.stockvedam.com is for informative purpose. Investor should do his own research while investing in stocks.
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