1000 points historic surge in the stock market’. ‘investors’ wealth increased by Rs 2 lakh crore, sometimes a massive 1000-point fall in the stock market’, ‘wiping off huge amounts of investors’ capital. After reading this type of news, various types of questions arise in the minds of millions of people that why do such sudden fluctuations occur in the stock market? What happens on a particular day, which suddenly causes turmoil worth trillions of rupees in this market? Enlightened readers should understand that everything like this happens in the stock market, that is why it is the stock market and its index is called ‘sensitive index Sensex’. Due to its sensitivity, it fluctuates due to the news of events happening in the society, country and abroad. Sensex needs only excuses to rise or fall and when there is no such reason then the market remains stable. But who would be interested in such a stable market.
The stock market is fickle, but due to its fickleness it should not be considered a mere speculative market. There is definitely betting here, but in this market there are different stadiums for each of its players. For day traders (those who keep buying and selling continuously throughout the day are called day traders), this is a case gambling, whereas for those who remain in the market only by investing, it is a pure investment market. It is safer to live as an investor in this market. Along with being safe, his investment can also create more wealth.
An attempt can be made to explain the matter on the basis of one or two true stories. If a person had invested 10 thousand rupees in a company called Wipro in the year 1980 and had kept that investment safe till the year 2006, its value would have become 200 crore rupees. When Dhirubhai Ambani brought the first public issue of his Reliance Industries, if a person had invested Rs 10 thousand in his company, it would have become Rs 2 crore by now. In summary, by selecting good companies in the stock market, the investor who keeps his investment in it for a long time gets a lot of profit. These can be purchased at any time to buy shares for a long time. The reason is that the basic nature of the market is such that the one who is patient gets full benefits.
I.P.O. What is it?
When any company issues a public issue for the first time to raise capital, it is called ‘initial public offer’ (I.P.O.) Says. Applicants who are allotted shares in a public issue can be bought and sold through the stock market after listing of the shares. Deals that occur after listing are called ‘secondary markets’. When a company proposes shares to its existing shareholders, then such an issue is called a right issue, in which the shareholders get the right to apply for new shares of the company on the basis of the ratio of their shares. But it is not his responsibility to apply for these new shares. When the company is going to earn continuous profit, it keeps distributing some part of the profit to the shareholders as dividend from year to year. When part of the remaining profit is accumulated and after capitalizing that accumulated amount, shares are allotted free of cost to their existing shareholders in the prescribed ratio, then it is called ‘bonus share’.
I.P.O. Keep this in mind while applying
I of any company.P. O. While applying, the investor should know who are the promoters of the company? How is the past record of these promoters? If these promoters have any other company then what is the financial performance of that company? Which industry sector does the company belong to? What are the current situation and future prospects of that industry? What are the future plans of the company? What will be its possible working outcome? Answers to many such questions are found in the company’s offer documents. In this, information about the risk aspects of the company is also given. Now companies have their I.P.O. Grading has to be done for this. This grading is given by various grading agencies including CRISIL. This grading is given in the order of one to five depending on the fundamentals of the company. In this, the first order company is considered weak from the point of view of fundamentals. It is good not to apply in the issue of such companies, whereas Grade-2 is a simple, Grade-3 is a sign of being a good company. The fundamentals of Grade-4 and Grade-5 companies are indicative of a strong and remarkable level.
Meaning of ‘PAN’ in stock market
One thing must be clearly understood is to make a deal to invest in the stock market or I.P. O. Income Tax Permanent Account Number (KNH) is now required to apply. Similarly, to trade in the stock market, it is also necessary to have a demat account. Demat account cannot be opened without PAN card. Thus now deal of shares is not possible without PAN number. There is no need to panic after hearing the name of PAN number of Income Tax. In this age of computers, income tax related transparency has increased, hence investors dealing in shares should not worry too much about income tax. The government has kept the dividends received on shares tax-free, that is, there is no tax on the amount that the company gives as dividend to the shareholders every year from its profits.
Apart from this, the government has also given many other tax benefits to investors investing in the stock market. When a shareholder earns profit by selling a share within twelve months of its purchase, then short term capital profit can be earned on this profit. This is called ‘Long Term Capital Gain’ and there is no tax on this benefit. This means that investors who sell the purchased shares after twelve months and earn profit on it, then there is no tax on such profit.
Stock market information
The question also arises in large sections of investors that B. S. E. And N.S.E. What is the difference between? Not only this, for whom are the stock markets existing in different states and how are they different from them? B.S.E. (Bombay Stock Exchange) and N.S.E. (National Stock Exchange) Both of these are complete computerized-online stock exchanges.
B.S.E. Not only the country, but Asia’s largest stock exchange, which has the most listed companies, while N.S.E. It has been almost 17 years since it was established. Both these stock exchanges have today become global in scale and its members can make deals with these exchanges from any corner of the country. In contrast, the stock markets of different states have now become volume-less and the number of deals on them is now negligible. Not only that, these are equivalent to stock market closures, but these B.S.E. And N.S.E. Become a member of and make a deal on it.
What is Sensex and other indices?
Whenever there is talk of stock market, the first thing to be heard or read is the word ‘‘Sensex’. ‘Sensex crosses 20 thousand level’ or ‘Sensex falls’ such titles read in newspapers or t.V. But we hear it. Sensex B. S. E. Or is the benchmark index, consisting of 30 bluechip companies from 12 important industrial sectors, which is why it is considered a barometer of market fluctuations. The ups and downs of Sensex indicate recession or rise in the market.
When an investor invests in companies included in the Sensex, he is confident that the companies in which he has invested are very capable companies from the point of view of fundamentals and growth. In this way, Sensex can be bought and sold in Sensex also after scrips. This means that if you feel that Sensex is going to rise then you can promise to buy it and if you believe that Sensex will fall then you can make a deal to sell it. These types of deals are called ‘Sensex futures deals’. B.S.E. ‘Mini Futures Contract’ has also been started so that investors can make deals in Sensex with low capital investment.
Broker’s choice
Deals in the stock market can be done only through registered stock brokers. Investors should choose the broker carefully and while choosing it, keep in mind their track record, quality of service, counseling services for clients, research etc. and how they treat you. If a stock broker provides cheap facilities, takes less brokerage, gives attractive and attractive news then it is not appropriate to select a broker based on these qualities alone.
Similarly, while opening your demat account, the depository party (D.p.) Is required. Someone from brokery to banks your D.P. Might be. If you trust your broker, you can open your demat account with him in a nearby bank. At present many banks are providing trading account facility along with demat facility. While opening a trading account, you have to provide information about demat account, PAN card number, your photo, proof of address, bank etc. Now transparency in behavior is continuously increasing.
What is this ‘tips’?
You hear the word ‘tips’ again and again in the stock market. People keep telling each other which shares will double in three months, etc. In market language such advice is called ‘tips’. Operators and bookies spread a large amount of tip-culture, in which information based on truth, lies or rumors keeps spreading in the market. Investors should always be careful with the tips spread in the market. In times of boom, tip culture becomes more developed in the market. Tips do not have any solid basis, due to which the amount of risk in the deals done on their basis is quite high. It is often seen that new investors fall prey to these market tips and earn their hard-earned money and later regret incurring losses.
B.S.E. Scratch of information on Hindi website
B.S.E. has provided special facilities for Hindi speaking investors. ‘hindi dot b.S.E. On ‘India.com’, important announcements made by various companies and exchanges are available in Hindi from morning till late night. Not only this, important information is available on this site to guide investors. B.S.E. Details of stock market trends are also available on this site every evening, about which you usually get information from the newspaper the next day or at night.V. But from the news. Not only this, many important information and data related to the stock market are available on this website, on the basis of which investors get help in taking investment decisions.
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