First of all Stock market is a place where two parties exchange there stocks or shares as per movement in stock prices to gain profit or book loss. Stock market is the part of financial market.Basic Stock Market.
What Is Financial Market?
Financial market gives opportunity to peoples, firms to invest in shares, bond, mutual fund etc. Financial market mainly divided in to part Money market & capital market / share market.Basic Stock Market.
What Is Money Market?
Money Market is mainly related to, commercial paper, certificates of deposit (CDs), bankers acceptances, Treasury bills, municipal notes etc.Money Market is a kind of segment of the financial market in which financial instruments Traded for very short maturities with high liquidity. Usually People Choose money market to invests money because of it is safe place to park money in the short term.
What Is Capital Market or Share Market?
Capital Market is place where people invest or trade their money for long term, short term, intraday basis in share or bonds. Investor of capital market usually participants in capital market for maximum profit & minimum loss. Risk in Capital market is very high as compared to other financial instruments.
Basically Capital market is divided into 2 parts
Primary Market:- To raise money for Expansion or Infrastructures Development of their company, companies Introduced share for trading through Initial Public offer to peoples.
Secondary market:- In Secondary market shares are already listed & available for trading.
What Are The Options Available In Stock Market?
2. Day Trading:– Intraday Trading.
3. Derivatives:- Futures & Options.
5. Margin Trading.
6. Swing Trading.
7. Income From Dividends & Bonus.
What is Demat?
As like bank account, your money is deposited in your saving account, Demat is Account keep your shares deliveries in Electronic Digital Format.
Benefit of Demat Account.
1. Shares take only three day to delivers in your demat account
2. Trader or investor are can sell share at any time in market hours.
3. Shares are in digital format so investor are able to watch online his portfolio at any time.
How To Open Demat Account & Is It Necessary?
Yes, Demat Account is necessary for trading in shares. NSDL & CDSL are two depository participant. U can open Demat account through Stock brokers.
What Is The Basic Requirement To Enter In Stock Market?
1. Trading Account.
2. Demat Account.
3. Good Stock Broker.
4. Margin Money for trading.