Stock Market Knowledge
1️⃣ What is the Stock Market?
The stock market is a place where shares of companies are bought and sold.
When you buy a share, you become a small owner of that company.
Example:
If you buy 1 share of Reliance → you own a tiny part of Reliance.
2️⃣ What is a Share?
- A share represents ownership in a company
- Companies issue shares to raise money for growth
- Share prices change based on demand and supply
3️⃣ Stock Exchanges in India
The two main stock exchanges are:
- NSE (National Stock Exchange)
- BSE (Bombay Stock Exchange)
All buying and selling happens here.
4️⃣ Demat Account & Trading Account
To invest in the stock market, you need:
✅ Demat Account
- Holds your shares in electronic form
- Works like a bank account for shares
✅ Trading Account
- Used to buy and sell shares
Popular platforms: Groww, Zerodha, Upstox
5️⃣ Why Do Share Prices Go Up or Down?
Share prices move because of:
- Company profits or losses
- News & announcements
- Market sentiment
- Economy (interest rates, inflation)
Good news → price goes up 📈
Bad news → price goes down 📉
6️⃣ Bull Market vs Bear Market
🐂 Bull Market
- Market is rising
- Investors feel confident
🐻 Bear Market
- Market is falling
- Investors feel fearful
7️⃣ Investment vs Trading
🟢 Investing
- Long-term (years)
- Lower risk
- Focus on good companies
🔴 Trading
- Short-term (minutes to days)
- Higher risk
- Requires strong skills
👉 Beginners should start with investing, not trading.
8️⃣ Best Options for Beginners
✅ Mutual Funds (SIP)
✅ Index Funds (Nifty 50)
✅ Large-cap stocks
❌ Options & Futures (avoid initially)
9️⃣ Common Beginner Mistakes
❌ Following tips blindly
❌ Investing in penny stocks
❌ Putting all money in one stock
❌ Panic selling during losses
❌ Trading without knowledge
🔟 Golden Rule
“The stock market rewards patience, not gambling.”