Share Market Meaning

Share market is often considered an intimidating term by many people in India. This is why even after the successful growth of the market, there are still very few people who choose the share market as their active investment option. One of the primary reasons is the lack of knowledge about the share market meaning and its functioning.

This article will talk about the stock market meaning to make the best of the opportunity.

What is Share Market Meaning?

To begin with, let us first understand what share market is? Share market is a place where you can trade the stocks of the publicly listed companies on the stock exchanges. The stock market is a place where people can buy and sell shares of publicly traded companies during set hours of the day.

There are four major exchanges in the Indian Stock market: NSE, BSE, MCX, and NCDEX. These are available for retail traders to trade in different stock market segments.

So all the listed companies, neither of these exchanges have their shares publicly for the traders. Not just the shares, but other investment options are debentures, bonds, mutual funds, etc are also a part of the share market.

The stock market functions under the various regulatory bodies that ensure no fraudulent activity is involved in the share market. This also makes the share market a safe space for buyers and sellers.

There are a wide number of buyers and sellers that meet when a transaction happens. Therefore, the share market keeps a lookout on the transparency of these transactions and ensures no mismatch of the prices.

But the next question is, how does the stock market work? Let us understand the whole process in some simple steps,

• A buyer places an order at the desired price.
• It is then the responsibility of the stockbroker to send this order to the exchanges.
• The exchange then looks and finds a suitable seller.
• The order then gets confirmed by the stock exchange.
• After the price is matched, the order gets executed and completed in the stock exchange.

It is as simple as that. Just like you place your shopping orders on any e-commerce website, you can also trade using the trading platforms given by the stockbrokers.

Types of Share Market

The share market lets all the investors have a fair opportunity to grab great profits in the market. Now there are two types of share market so that the investors can choose their idea of profits and the market according to their own trading styles.

• Primary Market- Before the shares get listed in the stock exchanges, they are traded in the primary market. Here are securities are introduced for the first time. This is done through a process called IPO or Initial Public Offering, wherein a private company gets public for the first time.

The basic purpose of the primary market is to get the companies to understand their valuation and also to raise capital for various reasons. It gives all the new investors and stock market beginners the to start their stock market careers.

• Secondary Market- When the shares get listed in the stock exchanges, they are said to be traded in the secondary market. Here the investors get the opportunity to study the market behavior and then enter or exit the stocks accordingly. Here the price matching and the actual

The transactions in the secondary market happen through a dedicated stockbroker and you can easily place the trades using the apps. When you open an account with Choice, you can easily trade using the Jiffy app which is fast, efficient, and user-friendly.

Share Market Index

Now that we have talked about the share market types and also the exchanges involved in the share market. Let us have a look at another common term associated, that is, the share market index.

In simple terms, the stock market index is a measurement of the stock market or the various companies that are listed in the stock market. It also helps to gain insights on the market trends, and also observe the market behaviour according to the sentiments of the traders and investors.

There are two major stock market indexes in India, NIFTY and SENSEX. Any trader associated with the Indian stock market should be aware of these two terms to earn money in the stock market.

NIFTY

Introduced on April 21, 1996, NIFTY is simply a compilation of the top 50 companies listed in the stock exchanges. The word NIFTY is an amalgamation of the two terms National and fifty and this further defines the reason of 50 companies.

The decision of including a company in this list is majorly based on market capitalization. One point that is to be noted is that all the companies included in the NIFTY are not part of a single sector. There are on average 13 sectors included in the NIFTY 50.

NIFTY is also one of the major and largest financial assets traded in the Indian stock market. All the stocks of NIFTY 50 are listed on the National Stock Exchange (NSE).

There are various sectors like NIFTY pharma, NIFTY IT, etc. Ever since the introduction of NIFTY, it has seen potential growth. What started with 1000 points has now crossed the mark of 17,00 points.

You can easily invest in NIFTY and enjoy the benefits for a long time.

SENSEX

Just like NIFTY is a compilation of 50 top companies, SENSEX is for the 30 companies. The stocks of these companies are traded in the Bombay Stock Exchange (BSE). SENSEX stands for Sensitivity Index and the selection of companies in this is also decided by the free-float market capitalization.

SENSEX was introduced for trading in 1986, and ever since then, it has seen steady growth. It is also the oldest stock index in the Indian stock market.

So, apart from the shares of the companies listed in the stock exchanges, you can also trade in these major indices and earn good profits.

How to start stock market investment?

Now that you know the basics of the stock market, are you wondering where should you begin from? Let us, therefore, have a look at how you can easily start your stock market investment.

• The first step before starting your stock market journey is to choose a stockbroker. This is because you need a demat account to make the investment process very easy. You can open a demat account with Choice  and take the benefit of the super convenient services and also a user-friendly Jiffy app.
• Once you have opened your demat account, you have to decide your financial goals. Every individual enters the market with different objectives and plans.
• After deciding your financial goals, it is also essential that you choose your trading style and trading segment. This not only gives you a clear vision but also helps you in picking the right strategy.

Apart from this, you can also follow some tips for stock market investment like learning the basics of the stock market, deciding your entry and exit point, and never let emotions take control of your major stock market decisions.

Share Market Account

When you enter the stock market, you will require a share market account so that you can proceed with your investment journey. A lot of beginners often get confused with the whole concept of a share market account, but there are two types of share market account.

• Demat Account- A demat account works as a safe for your shares. You can hold your shares in the demat account in a digital format. This has ensured added security for your shares and also easy trading. There are also different demat account types. The three major ones are regular demat account, repatriable demat account, and non-repatriable demat account.
  
• Trading Account- With your demat account, there is also a linked trading account. So all the debit and credit transactions happen through the trading account.

These days, majority of the stockbrokers open a 2 in 1 share market account.You can easily open a demat account with Choice and start your investment journey. Let us now have a look at how you can open a share market account.

How To Open Share Market Account

It is very easy to open a share market account now. You can easily open a demat account online and can also choose the offline services just in case you are not satisfied with the online account opening.

You can open a demat account with Choice in few simple steps. Just keep the documents required for demat account handy and you are good to go. The list of documents that you will require are,

• Proof of address
• Identity Proof
• Bank account details
• PAN Card
• Aadhar card
• Income Proof
• Photograph
• Signature

Once you have all these documents, you can follow the given steps to open a share market account.

• Open the Choice website and click on open a demat account.
• Enter your name and your mobile number.
• You will receive an OTP, verify it and click on submit.
• Enter all the required fields like name, your income,marital status,etc.
• Upload all the necessary documents like PAN card, aadhar card, etc.
• Choice Broking also gives you a chance to choose from the different demat account AMC charges.
• Once you have completed all the steps, you will be redirected to the NSDL website for e-sign. You have to enter your aadhar card number here and then verify the same with the OTP received on your registered mobile number.

Choice takes up to four hours for your account activation after the successful verification of your account.

Conclusion

Share market is an interesting arena to explore and every day brings a new opportunity. Even after the consistent growth of the Indian stock market, a lot of people are still scared to invest their hard-earned money here. But to sum everything up, if you are acquainted with the basics of the stock market and align it with your financial goals, this can give you great results.

Now that you are aware of the share market meaning, why not start trading? Open a demat account today and never miss out on a good opportunity.

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