Traders have gained high profit from the stock market than any other market. A stock market is a place where the buying and selling of the products take place. The primary market is the place where the company provides shares by initial public offering to raise the capital of the company. Once the shares or securities are sold in the primary market are traded in the secondary market called the stock market. Here the investors purchase the product from the other investor. Stock exchanges are under the control of the government and the regulatory authority. Bombay stock exchange and National stock exchanges are India’s premier stock market.
Benefits of investing in the stock market
1) The growth of the economy
Exchange of shares from buyer to seller increases the liquidity f the money and it increases the economic growth of our country.
Purchasing shares in the company mean you become one of the owners of that company.
3) Easy to buy
The share or securities can be purchased easily from the stock market through broker or online. once you have opened the account you can buy the shares within a minute.
4) Easy to sell
If you want cash immediately means the stock market allows you to sell your shares at any time
The four types of investment strategies in the stock market are investing, speculation, trading, and boglehead.
- A) Investing
Investors of the company are owners of the long-term in purchasing shares. First, the company has to be selected with the desirable products and services. And they desire the high profit of the company. Warren Buffet motive is to look at the asset and spend some money and you will get some money at the back.
Investors in the stock market use the technique called fundamental or value analysis techniques. Some investors select the company with a strong competitive advantage and thereby the growth of the company takes place year after another.
- B) Speculation
Investors purchase the product or service of the company when there is fluctuation in the price. Investors with advantage information over the other gain the profit than the other with the knowledge less.
- C) Trading
Buying and selling of the product within the short period of time are called trading. They will concentrate on the price volatility to gain more profit. Financial institutions are mainly involved in the bulk of trading. Automated trading robot reduces the trading market liquidity.
- D) Bogleheads
It is otherwise called index fund investing. Many security buyers turned into portfolio management through mutual funds.