Who Should Invest in the Stock Markets?

Who Should Invest in the Stock Markets? 
This is a very common question asked by many people. Every time you listen about the share market number of questions arise in your mind. Let us take a look of some questions that we come across many times:

1. What is share market?
2. Who should invest in share market?
3. Do we require to have some special knowledge to enter the market?
4. How does the market goes up and down?
5. Benefits of investment in share market?

So we first discuss what is a share market:

Share market is simply a place with the help of which Organizations, firms, may be Private,Public or Government raise money or capital  is a share market.

•  When these companies are in need of funds they go to financial institution like banks and raise funds. These type of shares are called debentures or private shares. These are basically a type of loan.
• When these firms go to the public to raise funds , these type of shares are call public shares. Here buyer of the share owns the ownership and hence he liable to share profit as well as the loss to the company.

This is the simple concept of share markets.

Who should invest in share market?

Anyone who is willing to take a calculated risk can invest in the share market. People often fear of loss when the topic of share market arise. The fact is that only few people are aware of the fact of share markets and the remaining just discuss the share market on account of others profit or loss. You don't need to invest a large sum to start trading, and definitely once you start it you will get to know the best of it.

Do we require to have some special knowledge to enter the market?

There is no special knowledge require to start trading. Though risk is involved, a beginner should first observe the market and start with only 10% of his total investment. One should keep track of few shares and study their ups and downs. This is the simple method of getting started without any prior knowledge.

How does the market goes up and down?

The concept of ups and downs is similar to the concept of demand and supply.

When the number of buyers increase the price of the share increases and similarly when sellers increases the prices go down.

Benefits of investment in share market?

The benefits of investment in the share market can explained with the help of following points

1. The profits earned through the share market is quiet more than the saving. Thus there is maximum return
2. Easy liquidity is also the reason to invest in share market.
3. The stock market is regulated by SEBI (Security Exchange Board of India) which take care of the profit and loss of the investors. Thus the investors are safeguarded from malpractices and losses.
4. Tax benefits is also one of the benefit.
5. It can also be your full time income source once you start to know the market.

Thank you.

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