Free Stock Market Basics class

Three basic points for Beginner.

1)What is the stock market? Or what is stock exchange?

Stock market is place where company, foreign investment institute, mutual fund companies, high network investors and normal investors are buy shares and sell shares place. In past this shares are trade through papers format, so investors receive the buy shares through paper format. But now all the share markets converted this paper format share to electronic format share. So now you can get your buy shares with stock price in electronic form.

Share market also called as stock exchange, financial market or there own local name like , Indian share market called NSE – National stock exchange, BSE – Bombay stock exchange, New York Stock Exchange (NYSE), the London Stock Exchange (LSE) or even the Honk Kong Stock Exchange (Hang Sang)

2)What is share? Or what is stock?

Simply put, 'share' means a part of full, in same way if your buy shares form some listed company then you are own a part of a company for personal profit and growth. Since you buy stock and therefore "invest" in a company, you also get to reap the benefits of earning a part of the company's profits.

There is thousands of listed shares in the stock market that you can find out in the financial market web sites, stock news websites also from stock newspapers. These shares are grouped by blue chip, A group, B group and C group. All the stock prices move in there own company, country and investors buying and selling shares volume.

3)What Makes Stock Investing Risky?

Any investment have it own merits and demerits same way stock market too. Investing in share market is also a risky, but you have a chance to control it.

If the invested share company does badly or country economic bad, you could lose your investment, but if the company does well and country economic is good, you can exponentially multiply your profit. The skill in stock investing lies in understanding which stocks are too risky and which are relatively less risky. There is no such thing as completely risk free because you cannot individually control what happens to a company or to the economy.  You can only control your own investment decisions.

Before investing in financial market, every investor should read up on these stock market basics because an informed decision is a potentially money-making decision. With these basics you are now ready to research further into the lucrative world of stock exchange.