Who doesn’t know about the share market? The hot topic of the decade! Almost everybody in the entire world aims to study the prices of shares of different companies everyday, whether on the internet or newspapers. It is pretty clear that stocks and shares are not everyone’s cup of tea. It needs immense intelligence and a business mind to understand it.
Often common people get very scared when they are asked about their plans of investment or anything related to the heavy terms like Nifty and Sensex etc. But, one should primarily know that the share market is not that tough nut to crack. It is very easy if studied in detail.
What are the basics of the stock market?
In a comprehensive language, stocks are the equities which a public company offers their buyers in order to generate capital. This capital is then used by them to run their company. It is very important to understand that, when a person buys some shares of a company, he/she ultimately becomes the owner of some percent of assets in the same company. The buyers are also given certain rights and can exercise them freely. Share market is a very useful place if used properly and adequately.
Offering and buying of shares is done in the primary market. In the primary market, the buyer buys the share directly from the company without any interference. After some time or whenever they wish to, they can sell their share to some other person in the secondary market. In a secondary market, a person directly transfers his ownership of shares to some other buyer without the interference of any company. These two are very diverse processes but work with the same aim that is income growth.
What are the perks given to the shareholders?
There are many rights which a company provides to their shareholders:
- They are given the right to vote. Shareholders can exercise their right to vote while selecting the new member of the board, the director or any other combined decisions.
- Shareholders are given the right to attend all the meetings of the company including the annual general meeting.
- Shareholders have the right to receive the dividend whenever the company makes profits.
There are many such rights provided to them.
What are the advantages and disadvantages of the stock market?
There are many pros of investing your money in stocks and shares. Below are some listed advantages of stock market:
- High liquidity rate: Many companies trade their shares in many famous stock exchange markets which provide the buyers easy liquidity of their shares. The higher the volume of shares, the more the chances of getting sold. It can be easily bought too.
- More returns: Stocks and shares provide a higher percentage of returns as compared to other financial instruments such as gold, fixed deposits etc.
- Shorter period: People can sell their shares whenever they want to. It does not bind them for any time period unlike other investment options. It is a huge and continuous market where the trading takes place all the time. With the help of a little research and outside knowledge, one can easily make huge profits.
- Diversification: Share market can be very useful for the people who are in a constant search of new investing ideas. The share market itself provides a number of financial instruments and securities in which traders can invest. Some of them are debentures, equities, bonds, derivatives, fixed deposits, mutual funds, insurance policies etc.
- Convenient and Accessible: Trading is a very convenient process specially for those who have a good knowledge of using the internet. Thanks to technology, trading has vertook the online platform which makes it very easy and convenient for people to just sit at home and perform trading.
But, with all these advantages, there are some disadvantages too. Some of them are listed below:
- Risk: Share market is full of risk. But with more risk comes more profit. If you have a considerable amount of knowledge then you can crack the road to success or you can face severe losses.
- Fluctuation: Prices and values of shares never remain the same. It all depends on the working of the company. It may rise to the sky or fall to the ground. At this time, you have to remain patient.
- Paid at last: Despite being the owners, shareholders are paid at the end while winding up of a company. They are often required to liquidate the assets and then get paid.
So, you see there are many disadvantages too, but still many youngsters and even businessmen are searching for a kickstart in the share market. For all those who require proper guidance in this subject, can enroll in best share market courses available all over the world. Many foreign institutions provide diploma courses to the people using online platforms. They also provide a certificate which helps you to get a proper job as a stockbroker or stock analyst.
What are the benefits of a stock market course?
The top stock market courses have many benefits. Some of them are given below?
- Better understanding: With the help of such courses, it is easy to grasp the tactics and tricks of trading in the stock market. You can easily find the true value and prices of shares.
- Financial settlement: With a good experience, one can help themselves to establish a better financial position. This may come with a positive attitude as well as a sound mind.
- The future: People with knowledge of the share market will always be able to predict the future of any company and their investment schemes.
- Educate others: Some people can even help others in finding their financial stability and teach them something about the stock and share market.
All these are the benefits of enrolling yourself in the stock market courses. This is among the many things which are not going to be over soon. This will continue to be there no matter what. The prices of shares will keep fluctuating, the companies will continue displaying them and people will continue to trade them.
If you are genuinely thinking about pursuing a career in this field, then with the help of good guidance, you must!