what is stock market

What Is Stock Market


Here we will learn about what is stock market. and how will the stock market work? What is the benefit of stock market? & discuss dividend. Whether it really benefits people or not, all of these things will be given in this article today, then let’s start.


What is the stock

The stocks are the Physical or Virtual Things of the listed company under BSE (Bombay Stock Exchange) or NSE (National Stock Exchange) in India.

Note:- Stocks are also known by these other names

  • Shares
  • Equity


Meaning of Stock

“Share means the share of a company’s share of the smallest share, which comes to the smallest part of the capital, that part is called SHARE.”

As such, the total capital of an ABC company is 1 million, and the company divides its capital of 1 million, divided into 1 lake separate, equal share, now each part is dividend, one of the smallest of the company’s capital The part is now worth 100 rupees, this small part of the capital is called SHARE,

when the capital of the ABC company is divided into SHARE, the company’s capital will now be called Share Capital, which would be like this



1,00,000 (one lake SHARE) * 100 (hundred share) = 1,00,00,000 (1 million total share capital)


A portion of the company’s capital

Now you understand that stock means that a part of the company’s capital, that is, whenever you buy stock, and you pay the money, then you are purchasing SHARE and giving the same amount of money to the stock bought for that company,

and in Business the capitalist is the owner of Business, in the same way, that you have stocks of a company, you become the owner of that company, equal to the cost of those stocks,


For Example:- If you have 100 stocks of State Bank of India and the price of one share is Rs 300 rupees then this means that you have 100 shares in State Bank of India, X 300 = 30,000 / – (thirty thousand rupees) in capital form You have been given this, and you are the shareholder in the benefits and the harm that will happen above 30 thousand rupees,

That is, you own as much as 30 thousand rupees in the State Bank of India.


Benefits from Stocks

There are two main ways to make money from stocks, they are dividing dividends, and if the price of shares increases, earning the profit by selling it, Value Growth Income,




In any business, there can be two positions in profit and loss, according to the management decision of the company, in Profit that the company you have stock will earn as much as you can in the future, as part of your profit, Dividend  will be received, and in this way you can reduce income as dividend by investing in stocks of the company.


Share Value Growth

If the company is continuously doing good business and is earning a profit, then the total value of the company increases, and thus increasing its capital increases the cost of Share and decreases the total value of the company in case of losses. Due to the decrease in the cost of your Share, and if you increase the Share price, by selling Share to the Stock Market you can make a profit by increasing the Share Value.


Share is a Certificate

Share is a certificate, Share is actually a certificate of the amount given to us by the company in the form of capital, we can also call the shares a share certificate.

The biggest benefit of dividing the capital into small shares ie Share is that, who has very little money, can buy some SHARE and thus the company gets money from the general public.

Let’s see now


What is the Market?

We are well-familiar with all market terms, Market is such a place where some are bought and sold, where many shopkeepers are sitting on their own shop, and the buyer comes in the market to buy the necessary goods and buys them from the shopkeeper,

Like – your city or street or street market,
There are two logos on the market,
First – buyer, second – seller

Let’s see now-



Works mainly on two large stock exchanges, BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

In the olden days, the purchase and sale of shares was done directly in the market, but now after the arrival of COMPUTERS, everything is seated by INTERNET either at home or anywhere, today by buying and selling all of the SHARES online Is performed,

You do not have to go to Mumbai to buy or sell SHARE, you can buy and sell SHARES from any corner of the world, with the help of a trading and DEMAT ACCOUNT near your online banking and any stockbroker. ,


Hope you have understood what the stock market is.

Next, we will talk about something else Interesting

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