Knowledge Center Fundamental Analysis
A share market, stock market, or equity market is a market where buying and selling of stocks or shares occur when companies publicly hold their shares for sale over money or exchanges.
1. The share market permits investors to hold shares of a company and be a part of its financial achievements.
2. Whenever a company makes a profit, share market investors get their returns through dividends. The company sets dividends. But, investors need to be aware that if the market performance falls and the company share price falls, they incur losses too, and the shares are further sold at a loss.
3. Investing and making good returns in the Share market is not easy. Investors need to know the market well, do constant research on any oscillation, and have lots of control and patience as such trading does not yield results overnight.
4. When a company gets listed to put out its shares for public offering to raise capital, this share is a part of the primary market. The primary phase is when the company goes public, and investors can buy shares. Once the new stocks have been sold out, the shares move to the secondary market. This is when the depositor has the option of exiting investment and selling the shares that a person has bought in the primary market. This is the position where investors can make profits based on the market recital and buy or sell shares to one another accordingly.
To know more: Types of Markets in Share Market
5. The National Stock Exchange and the Bombay Stock Exchange of the Indian share market have their own indices to assist in measuring the performance of the market, Nifty and Sensex, in that order. Depending on which platform investors choose to trade in, a basic understanding of the index calculation and share trading tips is good.
6. The value of stocks and shares varies frequently depending on the market scenario. It is complex for investors to set a certain price. This is when derivative instruments come to the help, which is also one of the share market’s approaches. The instruments help one trade in the future at a fixed price today. The amount of the trade is determined at the point of agreement.