Learn Share market in 2 minuts | what is nifty and sensex

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The Market where a company sells its share is known as the share market. When a company needs money, it sells its share to the public to get some money to fulfil its need. Issue of the share means sharing ownership of that company. For the growth of the company, owners sell its shares.

To be an owner of the company, you have to purchase shares of that company, and you will be called the owner of that share whatever you have purchased. After buying shares, you can sell that if you want to sell to any of the buyers.

The company never sells its total share. It keeps more than 50% shares with itself. Therefore the company has DECISION-MAKING RIGHT, and it could not lose its decision making right.

The Market where shares can be purchased or sold is called SHARE MARKET. SHARE MARKET is also known as STOCK MARKET. In India we have two stock exchanges.

There are two types of Stock Exchange

  1. BSE (BOMBAY STOCK EXCHANGE)
  2. NSE (NATIONAL STOCK EXCHANGE)

BSE is Private. NSE is Government.

How to Invest Money in the Stock Market ?

STOCK and SHARE these two words are used for each other. To invest your money in the share market, you will have to open your DEMAT ACCOUNT. If you open your DEMAT ACCOUNT means you have shown your interest in share purchase. When you will open your account broker will receive your all information.

There is another account called TRADING ACCOUNT used for buying and selling shares. It is specially used for brokers.

How to Purchase Shares?

Before you purchase Shares you need to create Demat Account. So Comple the Process of Demat Account.

First of all you have to select at what company’s share you want to purchase after that search it out about that company’s detail, background and reviews etc. on internet. After that you should decide that companies share would profitable for you or not. And then if you want to invest on your selected company then you can.

What is Nifty And Sensex ?

We will discus a few words about the share market so that you can easily understand the Sensex and Nifty.

  • BULL (Price of the market increase)
  • BEAR (Price of the market decrease)

There are two arrows in the Share Market 

  • RED ARROW (it shows UPMARKET)
  • GREEN ARROW (it shows DOWN MARKET)
The word Nifty is used for Government Company, and Sensex is used for the Private Company.

 

The word Nifty is used for Government Company, and Sensex is used for the Private Company.

SENSEX means DOWN MARKET.

FOR EXAMPLE – If You purchased 100 RS. Share and sell them in 70 RS. Share of the sale in less amount is known as SENSEX. SENSEX is used for BOMBAY STOCK EXCHANGE, 30 companies register in BSE. There is an index of every company, On that basis, Sensex can be known.

Nifty is used for NSE. Nifty means Fifty .50 Companies Register in NSE on that basis we can calculate today’s Market’s condition means Market will be BULL or BEAR.

NSE and BSE, These two companies are Regulated by SEBI.

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