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Basic Concepts of Share Market for Beginners | 2021

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SHARE FOR BEGINNERS.| PART 01

1) SHARE  MARKET :

Share Market is a wealth development and growing platform. It depends on company development and growth. The share market shows the health of the economy of India. Share market is the aggregation of buyers and sellers of shares, which represents ownership claims on business; this may include securities listed on a public stock exchange, as well as stock that is not only traded privately, such as share of privet companies.

2) INVESTMENT :

Investment is part of the share market. Investment is a soul of money because without investment money is death. If you invest your money in highly rated and bluechip companies for a long time i.e 5-above years can give you a high return. A company needs growth and development and for this company raises money from people and as a company grows the value of an investment increases.

3) SHARES :

A part or portion of a big amount is divided among a number of people. In simple words, a share is a document represented by a company that entitles its holder to be one of the owners of the company. A share is issued by the company. Share are units of ownership interest in a corporation of financial assets that provide for an equal distribution in any profit.

4) STOCK EXCHANGES :

In India, there are two stock exchanges BSE and NSE i.e Bombay stock exchange and national stock exchange. The stock exchanges are work as a mediator between share buyers and seller. In NSE there are 1328 companies are listed and in BSE 5000 companies are listed. The stock exchanges NSE and BSE are under the influence of SEBI i.e security and exchange board of India.

5) A] SEBI (security and exchange board of India) :

SEBI is also called as a market regulator means SEBI controlled two stock exchanges NSE and BSE. In this, all listed company need to follow rules and regulation otherwise SEBI action on those company who is not following their rules and regulation.

B] RBI (Reserve bank of India):

RBI i.e reserve bank of India controlled all banks of India and also controlled nifty banks i.e top 50 banks of India. Every bank follows rules and regulations of RBI. RBI is one of the most powerful banks controlled system.

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