Introduction To Share Market Basics And How It Works

Module 1: An Introduction to the Share Market

The share market is the marketplace where shares or stocks of the publicly listed companies are bought and sold. It acts as a hub for investments and wealth creation.

Important Facts to Ponder:

The share market enables companies to raise capital and allows investors to earn returns by buying shares.

Transactions occur in a transparent and regulated environment to protect investors.

Using a share market app, such as the Best Trading App India for Beginners, allows one to trade from anywhere using a mobile.

Research from Users:

What do you think makes investing in the share market a good choice for wealth creation?

Module 2: Introduction to Stock Exchange NSE, BSE, etc.

The stock exchange functions as an organised market for shares' trade. Some of the major stock exchanges in India are:

NSE (National Stock Exchange): Advanced technology and high volumes of trading.

BSE (Bombay Stock Exchange): Asia's oldest stock exchange with thousands of listed companies.

A share market app like Shoonya (zero brokerage) ensures easy access to NSE and BSE for trading in India.

Inquiry for Participants:

Which one do you think is better for beginners, NSE or BSE? Why?

Module 3: The Reasons Companies Go Public

Float shares to the public when companies need to raise further capital for expansion.

Capital Raising: Companies raise money for expansion and operations.

Liquidity for Founders: Founders can liquidate a part of their equity.

Brand Building: Public companies gain credibility and visibility.

Such investment apps, like Best Trading App India for Beginners, make it so simple to invest in IPOs and track their performance post-listing.

Inquiry for Users:

Ever thought of investing in an IPO? What attracts you to an IPO?

Module 4: Stock Market Participants Qualifications

A stock market involves many participants:

Retail Investors: Individual investors, such as ourselves.

Institutional Investors: Large organisations, such as mutual funds, banks, and pension funds.

Brokers: Intermediaries who carry out buy and sell orders.

With the help of a share market app, retail investors can trade directly without much dependence on brokers.

Inquiry for Participants:

Would you rather trade individually or with a broker? Why?

Module 5: Market Instruments

The share market offers numerous trading and investing instruments:

Equity: Purchasing shares of corporations, thereby acquiring a stake in their business operations.

Derivatives: Contracts such as futures and options on underlying assets.

Commodities: Trading of gold, silver, crude oil, and agricultural products.

Mutual Funds: Investment pools managed by professionals.

The best trading application for India beginners provides a platform that offers full exposure to all these instruments.

Questions for Users:

What market instrument would you like to trade the most? Why?

Module 6: The Stock Market Basics - Key Concepts

Glossary of Terms:

Sensex: A list of top 30 stocks quoted on BSE in terms of market capitalization.

SEBI: The Securities and Exchange Board of India, the securities market regulator.

Demat Account: Electronic version of online portfolio with shares and securities.

Bull Market: Characterised with increased company revenues associated with a flourishing economy.

Bear Market: The economy slows down, leading to lower consumer spending and GDP.

Portfolio: A collection of assets like stocks, bonds, and commodities owned by an investor.

Moving Average: A stock indicator employed in technical analysis to monitor trends in prices.

IPO: The process where a company offers its securities to the public for the first time.

Nifty50: A basket of 50 top listed companies of the NSE.

Call & Put Options: Options confer rights to either buy or sell a stock at a pre-specified price.

Question for users:

What do you find most difficult to understand in this stock market terminology?

Module 7: Getting Started Trading

To begin share market trading, follow the following steps:

Open a Demat Account: A digital account to hold your shares.

Open a trading account: Used for executing buy and sell orders.

Link a bank account: Makes transferring funds easy.

Download a Share Market App: Apps such as Best Trading App India for Beginners by Shoonya make it easy and user-friendly to conduct transactions.

Why Use a Share Market App?

Real-time updates.

Secure transactions.

Advanced charting tools.

Immediate alerts for monitoring your portfolio.

FAQs

Q1: What do you think are the reasons why investing in the share market is a good option for wealth creation?

Answer: Because of potential high returns when investing in some well-performing companies, which can be a great way to build wealth over a long period, this is true for investing in the share market and also provides for diversification and long-term growth.

Q2: NSE or BSE? Which do you think will be more favourable for new investors? Why?

Answer: Both exchanges are good but the National Stock Exchange is usually more preferred among newcomers for advanced technology, liquidity, and promptness in trading. However, Bombay Stock Exchange is Asia's oldest exchange, where you would be able to trade in most numbers of shares.

Q3: Have you ever considered investing in an IPO? What is it that appeals to you about an IPO?

Answer: You get to purchase shares of a company at its very inception and usually at a good price in an IPO. This could mean that, if the company does well after the initial public offering, you'll make some great returns.

Q4: Would you rather trade on your own or through a broker? Why?

Answer: Trading individually offers better control over your investments, whereas brokers can offer professional guidance, the sources of research, and more importantly, management of your trades by them. It is a matter of your risk appetite and experience.

Q5: What market instrument would you like to trade the most? Why?

Answer: Some investors would trade Equity as they enjoy owning equities in companies. Other people might be trading Derivatives or Commodities to create more complicated strategies. It is according to your investment objectives and risk profile.

Q6: What do you find most difficult to understand in stock market terminology?

Answer: Most of the time, novices will find terms like P/E ratio, Market Cap, or Moving Average somewhat confusing. Gradual learning of such terms can make it easier to understand stock market ideas.

Q7: What do you most value in a share market app?

Answer: Features such as real-time updates, secure transactions, advanced charting tools, and instant notifications are often most highly valued by traders for making rapid decisions and staying informed.