If you are a beginner in stock market then your mind might be confronted with a lot of questions. To trade and make money in a stock market does not look easy as it sounds. You have to possess proper knowledge and information so as to make money from a stock market. This is possible if you are aware of the basics of stock marketing along with the use of the best trading platform in India.
What is the difference between a share market and a stock market?
The moment buyers or sellers reach at a common place it is known as stock market. Earlier when physical selling or buying of stocks used to take place clients had to stand in a ring form. By introduction of electronic trading the traders are able to trade shares easily. There is no restriction in terms of lots as you can buy or sell shares as per your convenience. To sum it up the terms stock market and share market does not have any major difference in the real sense.
Now before investing in share market there are some basics you need to be aware
The basics of stock market for beginners
As a beginner you need to understand where and how the basics of share trading are done. Basically there are a couple of avenues where shares are listed that is NSE and BSE.
People are known to invest in order to have a better future. Proper investments overcome the fear of inflation along with crises in the market. It would not be wrong to say that stock market provides an opportunity to purchase shares when the prices are low and sell when the price is high. So as an investor you have to choose the right stocks and implement proper strategies in order to make returns in the stock market.
As a beginner in the stock market you have to be aware that there are two types of market, the primary and the secondary market. Now you need to figure out the difference between both of them
The moment a company decides to list them on the stock exchange they come out with their initial IPO offering. The moment a trader applies for an IPO such a market is termed as primary market. On the other hand when traders are able to purchase or sell shares once they have been listed this is an example of secondary market.
Another point as a beginner you need to be aware in a stock market is when the price of shares is expected to rise and fall. In order to put it another way there is another reason for rise and fall in the stock prices. As an investor you need to have some knowledge about basic price movement.
The prices of shares occur when there is buying in the stock and even declines when the prices fall. Buying does occur due to superior levels of performance.