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Stock Market Investment For Beginners [Quick-step guide]

what is market share?

market share definition: As we all know that to establish a company, needs a huge amount of fund to grow exponentially, expand in a wide spectrum and run smoothly to make it stable. To make it possible one of the approach is to take a loan from the bank.

But this creates a problem and pressure to the company which has to pay back with extra interest every month. So this is not a good idea because the company will fall into debt.


stock-market-investment-for-beginners



What is the smartest way to generate fund being dept free company without taking a loan from the bank?

The smartest way to generate fund is releasing shares or ownership of the company which are bought by the public like us.

This share is also known as Initial public offering(IPO).

In a simple way, the companies capital is divided into smaller parts called shares. Anyone who buys this shares holds the ownership of that particular company.

Now, the benefit of Investor holding the shares are:

  • An opportunity to become part-owner of the company and business.
  • Not to face losses beyond the investment.
  • Can buy or sell the share anytime.

In 1981 establishment of Infosys, though the company was doing well could not make a good amount of money. But thing changed in 1993 after releasing Initial public offering (IPO) of Infosys. The rest is history, Investor who invested at least 10,000 in Infosys became millionaires in the stock market today.

This is all about investing in the share market, the company owns the fund in exchange for ownership of the company.

When the company grows and earn benefit, the price of the share increases brings massive returns to the shareholder as a passive income.

This is a win to win situation to both shareholder and company.

Introduction to stock market investment for Beginners

Stock Market Investment: If you are a smart Investor, you will love and enjoy in the stocks market. It is very interesting and playing like a Game. In a normal marketplace, you just buy or sell product or services. But in the stock trading platforms, you do both the buying and selling process.



stock-market-investment-for-beginners


[ 2- Important Players in Stock Market ]
  • Investors: Investors plays in a smart and excellent way of low-risk Game. Before Investing, they do complete research on the fundamental of the stock market graph. They know very well how to invest money in stocks.
  • Speculators: Speculators are a novice and play a blind game. They believe in luck more than facts and logic. Speculators put money without any research or the fundamental knowledge of the stock market. Ultimately they involve in the high-risk game.

Let’s understand the difference between Investors and Speculators from various angles.

1. The goal of Investment

  • Investor invest money on a low-risk stock with high valuation probability.
  • Speculators only come here to earn profit without focusing on learning.

2. Way of Investment
  • The investor invests according to market research and analysis.
  • Speculators react according to people gossip
stock-market-investment-for-beginners


3. Commitment to the duration
  • The investor has a long term vision
  • Speculators have short term vision
4. Risk level
  • Investor plays a low-risk game
  • Speculators play a high-risk game

5. Return of Investment
  • Investors earn when the company turn into profit
  • Speculators earn according to the fluctuation of shares.
6. Investor psychology
  • Investor work according to facts and logic.
  • Speculators only crave for money.

The importance of the stock market investment

Stock Market is a marketplace/platform where buyers and sellers or broker come for trading shares.

1. Price stability

The price of the shares depends upon the game of Supply and Demand. The value of shares increases as the company grows.


2. Trade anytime

The stock market allows to trade any time you wish. It gives freedom to express your desire for timing. You can open your brokerage account on the Internet. There is much online stockbroker who is trading 24*7.


3. Freedom of any low Investment:

As a beginner, you can invest even a small amount of money. For the first time as an experiment, research or hit and trial you can also invest 50. In this way, you learn how to invest in stocks for beginners with little money.



4. Fulfil the need for a company

Any authorised company can get the need for fun in exchange for ownership.


5. Opportunity to do business with expertise


You can even be the owner of the company without any former experience or knowledge of the business. You don’t have to spend time. Investing money for beginners in Stocks Market can be a good choice.
  • The stock exchange plays a great role in the economic growth of the country.

How do you make money in the Stock Market?

1. Dividend Yield: When a company grows successfully, they are very happy to give some amount of profit to their shareholders.

2. The right selection of stock pays you: The increase in the value of share increases your earning potential. You should know how to buy stock.

How to invest in the stock market for beginners

Any amount is not small, the only requirement is to take action.

stock-market-investment-for-beginners




[Step-1]: Open Demat account online

It is used to store shares for exchange of trading. It is very easy to use and you will know how to buy stocks online without a broker.


[Step-2]: Don’t think the stock market as gambling

After earning profit from the first attempt, many people invest a huge amount of money. As a result, they have to face great losses. This type of people loos motivation in stock market investment. So focus on learning rather than earning.


[Step-3]: Read business magazine & newspaper

Read the news at least once in weak, here you will get reviews of most growing and top companies. You will complete an analysis of the stock market.


This is the super guideline to stock market investing for beginners.
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