The share market, also known as the stock market or equity market, is a platform where publicly traded companies issue and trade their shares to investors. It provides a way for companies to raise capital by selling their shares, while investors can buy and sell these shares as a means of investing and potentially earning a profit.
Here are some key concepts and terms related to the share market:
Stocks or Shares: These represent ownership in a company. When an investor buys a share, they own a portion of the company and have the right to vote at shareholder meetings and receive a portion of the company's profits in the form of dividends.
Index: An index is a benchmark that measures the performance of a group of stocks. Examples of indices include the S&P 500 and the Dow Jones Industrial Average.
Bull Market: A bull market is characterized by rising prices and optimistic investor sentiment. This can occur when there is strong economic growth, low unemployment, and positive earnings reports from companies.
Bear Market: A bear market is characterized by falling prices and pessimistic investor sentiment. This can occur during economic downturns, political instability, or negative earnings reports from companies.
Trading: Trading refers to the buying and selling of shares on the stock market. This can be done through a broker or online trading platform.
Broker: A broker is a person or firm that buys and sells shares on behalf of an investor. They charge a commission or fee for their services.
Initial Public Offering (IPO): An IPO occurs when a private company first offers its shares for sale to the public. This is often done to raise capital for growth and expansion.
Market Capitalization: Market capitalization refers to the total value of a company's outstanding shares. It is calculated by multiplying the number of shares by the current market price.
Volatility: Volatility refers to the degree of variation in a stock's price. Highly volatile stocks can experience rapid price fluctuations, while less volatile stocks may have more stable prices.
Dividend: A dividend is a portion of a company's profits that is paid out to shareholders. Not all companies pay dividends, and the amount can vary depending on the company's financial performance.
It's important to note that investing in the share market carries risks and investors should do their own research and seek professional advice before making investment decisions.