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What is Share Market and Stock Market? Basic Knowledge

Share market is the market where a small part of a company (which we call shares and stocks) is bought and sold. Shares and stocks represent the owner
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 What is Share Market and Stock Market?

Differences between Share Market and Stock Market 

Share market and stock market are both the same thing, just their names are different here like we also know it as equity market.

What is Share Market and Stock Market?

Share market is the market where a small part of a company (which we call shares and stocks) is bought and sold. Shares and stocks represent the ownership of a company. Like you have bought 1% shares of any x company, now you have become the owner of 1% of this company. After buying shares, if this company is in profit then its profit will also be seen in your shares, similarly if this company is in loss then its loss will be seen in your shares. Let us take an example to understand it better.

Share Market Example:- Suppose your friend wants to start a company but he does not have enough money to start it. To solve this problem your friend asks you to contribute 50% of the money. In return both of you will share the profit and loss of the company 50-50 percent. This will give you 50% share of this company. This is called share market. Here we have taken the example of a friend, similarly in the real world also the company sells its shares globally.

Why does a company sell shares?

The capital of the company is divided into shares. The company offers its shares for sale to raise funds, but why does any big company do this? The reason behind this is to execute its new project. When the company brings its new project to the market, it needs a lot of money for it. To meet the shortage of money, the company offers its shares for sale in the market.

How to Invest in Stock Market

To invest our money in the stock market, we must have a demat and trading account. To open a demat and trading account, we have to select a stock broker firm. There are many stock broker firms in the market like Angle One, Zerodha, Upstox, Groww etc. All these apps are available for free on the Play Store. All stock broker firms charge different commissions for providing the facility. You can invest in the stock market by opening an account in any of these apps.