ShareMarket Basic

The stock market or share market is a platform where shares or stocks of publicly traded companies are bought and sold. Shares represent a portion of ownership in a company, and their value can fluctuate based on various factors such as the company’s financial performance, economic conditions, and investor sentiment.

To invest in the stock market, an individual needs to open a trading account with a broker, who facilitates buying and selling of shares on their behalf. The investor can then choose to invest in individual stocks or buy shares of a mutual fund or exchange-traded fund (ETF) that pools money from multiple investors and invests in a diversified portfolio of stocks.

The price of a stock is determined by the market forces of supply and demand, which means that if there are more buyers than sellers, the price will go up, and if there are more sellers than buyers, the price will go down. The market is influenced by various factors, including economic indicators, political developments, corporate news, and global events.

Investing in the stock market comes with risks, and it is essential to have a well-diversified portfolio to mitigate those risks. It is also crucial to have a long-term investment horizon and to conduct thorough research before investing in any stock or fund.