Share Market

Investments

Quick Definition

The Share Market is a platform where shares (stocks) of publicly listed companies are bought and sold by investors.

Detailed Explanation

The Share Market, also known as the stock market, allows companies to raise capital and investors to buy ownership (shares) in those companies. When you buy a share, you become a partial owner of that company.

In India, the main stock exchanges are:

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These markets are regulated by the :contentReference[oaicite:2]{index=2} to ensure transparency and protect investors.

How the Share Market Works

  • Investors place buy/sell orders through brokers
  • Prices are determined by demand and supply
  • Trading happens in real-time during market hours

Types of Share Markets

  • Primary Market: Where companies issue new shares (IPO)
  • Secondary Market: Where investors trade existing shares

Benefits

  • Opportunity for wealth creation
  • Liquidity (easy to buy/sell shares)
  • Dividend income

Risks

  • Market volatility
  • Price fluctuations
  • Potential losses

The share market is suitable for investors looking for long-term growth, but it requires knowledge, patience, and risk management.

Example

"If you buy shares of a company at ₹100 and the price rises to ₹150, you earn a profit of ₹50 per share."

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