What is Stock Market and types of stock market? how to make money from it?

What is Stock Market types of stock market? The stock market is a collection of buyers and sellers of stocks, representing a claim to ownership of the business; This may include public listed values.

Do you know what is stock market and types of stock market? You must have seen people talk about it often. And you often see a lot of posts related to it on the internet, but did you know that most posts don’t give you accurate information about this, but instead of half-incomplete information there it confuses you.

Many people want to invest in the stock market, but due to a lack of adequate knowledge about the stock market, they cannot avoid investing in the stock market and do not invest in the stock market or lose their money investing in the stock market.

The stock market has many names and is known by different names of different individuals. “Share” is an English word.

The BSE (Bombay Stock Exchange) is considered the largest stock exchange in India. It was established in 1875 as the first stock exchange in India.

The second stock exchange in India is the NSE (National Stock Exchange of India). It was established in 1992 as the first demutualized electronic stock exchange in India.

So what is this stock market? And how it works? Therefore, today’s post will try to provide all the information about the stock market so that you can avoid further losses and get better information about the stock market.

So let’s start without further ado and get complete information on what is stock market and types of the stock market?

What is Stock Market?

What is Stock Market

As we know that people know the stock market or the stock market by different names and this I have already told that the meaning of the share directly means “share” can be called share in a company in the stock market.

Stock Market Example

For example, suppose a company issues a million shares. Now, if a person buys all the shares in that company, he becomes the owner of that stock. For example, if a person buys 40,000 shares out of 1 lakh in the company, then his share will be 40% in that company. And he will own that 40% share.

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Actions represent an individual association in an organization. And when that person wants, they can sell their shares to someone else or for someone else’s shares.

The company’s shares or share prices are recorded in BSE. The share prices of all companies fluctuate or increase according to the profitability of the company.

The Securities and Exchange Board of India (SEBI) maintains control over the entire market. Only when SEBI allows a company to make its IPO, no company can make an IPO without SEBI’s permission.

When does the company appear in the stock market?

To be listed or visible on the stock market, the company must enter into various written agreements with the exchange, under which the company must provide information about its activities in the market from time to time, such information also affects the interests of the investors.

Based on this evaluation based on the information provided by the company and the evaluation of the company, demand decreases in fluctuations in the price of the company’s shares.

If a company does not follow the rules of the deal and is guilty of violating the rules of the exchange, Sebi will take steps to remove it.

In addition to this, the company has to take a lot to be present in the stock market. Such as the complete record of the company for the last 3 years, the company’s share in the market above 25 crores, the capital of the applicant company for IPO is at least  10Cr. And 3 CR for FPO.

In addition to all these things, there are many things to look for when listing a company. For any list of companies, it is necessary to follow strict rules.

Types of Stock Market?

There may be different types of actions and different people define them differently. However, we can divide participation in 3 basic ways. Let’s know the types of actions: –

1.) Common Shares: anyone can buy them. And you can sell it if necessary. These are the most common methods of sharing.

2) Bonus Shares: when a company makes good profits and that company wants to give some stake to its shareholders. Instead, he doesn’t want to pay and if he gives shares, it’s called bonus shares.

3) Preferred Shares: This stock only brings certain people to the company. When a company needs money and wants to raise money from the market, the shares to be issued will only give certain people the first right to buy. Like employees who work in an organization. Such actions are considered very safe.

How to invest in stock market?

If you are considering investing to offset inflation and make a good return, one option might be to start investing in the stock market.

If you decide to do the same and do it on your own, it’s not a bad idea.

The stock market can help you make a lot of money when understood correctly, but you can lose all your money if you’re tempted to invest randomly without knowing the curiosity of the market.

To buy stocks, you must first decide whether you want to buy the shares yourself or seek the help of a broker. Only then could I carry on.

If you want to get a broker, first give it to your account, which is called a Demat. What can happen to your broker? Buy a post from a broker that has many benefits, one is that you’ll get better instructions, and in a second, you’ll get complete information on the valuable mercury. The correspondent takes profits or participation in accusations for helping him and receives information about accusations, etc.

>What is Demat Account, how to open it?

There are only 2 stock exchanges in India, NSE, and other BSE. Only companies discovering these allegations can buy or sell these allegations.

When you buy or sell an accusation, it means that your account is already closed to your account. You can easily transfer your account from your account to your account.

If you want to invest your money in the Share Market, then you can create your account on Discount Broker ” Zerodha “. In this, you can open a Demat Account very quickly and easily and can also buy Share in it.

What is trading in stock market?

The term Trading is very popular and widely used in the stock market. The Hindi word means “business”. Whenever we buy an item or a service with the aim that after keeping the item and service for some time, we will make a profit by selling it. It can be called ” Trading”.

Similarly, when a person buys shares in the stock market, their main goal is to make a profit by selling those shares after the share price increases. To obtain this benefit, the entire process of buying and selling shares is called “trading in stock market”.

What is type of stock trading?

There may be different types of trade. But there are mainly 3 types of people who are engaged in trade and who like it a lot and who use it.

1) Intra-day Trading: the trading that is completed in one day is called intraday trading. In intraday trading, the purchase and sale of shares take place on the same day.

2) Scalper Trading: buy, sell trades in a few minutes, called Scalper trade. In this, the shares are bought and sold in 5 to 10 minutes. This type of stock is more profitable. However, it can be profitable only when the investment amount is high. There are more chances of loss as well because the amount charged is also high.

3) Swing Trading: The trading process is completed in a few days, weeks, or months. After buying the stock, investors keep it for a time, like a week or a month. After that, we wait after the stock price increases and when the correct price is found, sell it.

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People think the stock market is a dangerous game. In which man only drowns, but not at all. This assumption is completely incorrect. If one invests in the stock market with the correct method and restriction, you can make a lot of profit from this.

But before jumping into it, the person must get as much information as possible. Incomplete information is always dangerous.

However, this does not mean that you should not invest in the stock market or have any special talent or ability to invest. Anyone can invest in and invest in the stock market, and with their experience, can be an expert in investing in the stock market.


I sincerely hope that I have given you complete information about Stock Market and types of stock market and hope everyone understands about Stock Market.

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