Share market is an area which fascinates each and every individual who is craving for more money.
The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together
The stock markets in the world
- New York Stock Exchange (NYSE),
- Toronto Stock Exchange,
- Amsterdam Stock Exchange,
- London Stock Exchange,
- Paris Bourse,
- Deutsche Börse (Frankfurt Stock Exchange),
- Nigerian Stock Exchange,
- JSE Limited,
- Singapore Exchange,
- Tokyo Stock Exchange,
- Hong Kong Stock Exchang,
- Shanghai Stock Exchange,
- Bombay Stock Exchange,
- BM&F Bovesp
- BMV. etc.
Every transaction in the stock exchange is carried out through licensed members called brokers.
To trade in shares, you have to approach a broker However, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders
The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it .
As beginners we should understand one thing. If we are planning to invest in share market, first we have to categorize our self 1) Long term 2) Short term investor.
Short Term Investor (Risky
1. Make investment break ups
2. Reinvest only when profits
3. Capital maintain
4. In case of IPO
5. Sell well ahead of your expected need
Long term investor
Its here we invest. We are most secured in this case because we don’t consider money invested to be used for emergency. Any company will one day have a growth curve. Even a sick company value can be raised by psychological factors of investors
