Saturday, October 16, 2010

What Are the Basic Stock Terms and Stock Trading Solutions?

STOCK MARKET Terms?


This may arise in the mind of any of the person who is going to deal in the stock market, what are the basic terminology for stock trading? There are some of the basic terms that are necessary to be understood by the person who wants to enter in the stock market.


What is Stock Market ?


Stock Market is an open source public market that involves the trading of the Shares of the companies that are listed in the Exchange.


What is a Share ?


A Share is the basic unit of a Stock Market and it is the individual unit a company can offer to the public.


IPO


IPO is the Initial Public Offering that a company can offer to the public so that they can become a part of owner of the company and the price of the initial share can be decided by the company itself.


Exchanges: These are the platforms which provide the facility of trading for Brokers for dealing in stocks.There are mainly two exchanges in India:


1.BSE (Bombay Stock Exchange ):- It is India's Oldest Stock Exchange with listing of over 4000 scripts with it. This not fully automated yet but progress towards full automation is underway. SENSEX is major index of BSE and it comprise of 30 scripts from different sectors.


2. NSE (National Stock exchange of India):- National Stock Exchange is the most advanced type of Stock exchange in the World. It has more than 2000 stocks from different sectors listed with it. It is fully automated electronic order processing exchange. Nifty is major index of NSE and it comprise of 50 scripts from different sectors.


Approximately 28-29 regional exchanges are there in India also but they are not much prevalent.


Types of Markets :


1. Equity Market (includes cash, Index futures and options, Stock futures etc.)


2. Commodity market (Commodities, bullion, base metals, agri etc.)


Indian Commodity market includes two major exchanges -


-MCX (Multi Commodity Exchange):This is an independent commodity exchange based in India. It was established in 2003 and is located in India. MCX is engaged in future trading in a number of commodities like agricultural commodities, Bullion, Ferrous and Non Ferrous metals, Pulses, Oil and Oil Seeds, Energy, Plantations, Spices and soft commodities.


-NCDEX (National Commodity and Derivatives Exchange Limited): It is an online commodity exchange based in India. It was incorporated as a private limited company .NCDEX is located in Mumbai and it has 550 centres all over the country. NCDEX trades in 57 commodities like agricultural commodities, precious metals, base metals, ferrous metals, energy, polymers etc.


How the Prices of Shares Depends?


The prices of the Shares can be decided on the basis of their assets,their market position,ups and downs in the market value of the company and this all can be decided by the exchange itself.


How to invest money in the Stock Market?


For investing the money in the Stock Market, you have to buy some shares of one or more than one company. Before investing in the stocks of any company keep following things in mind:


-Consult the status of that company.


-Know what are the future plans of the company?


-Keep in touch with the company updates.


-Select a reputed company.


How to Gain Profit in the Stock market?


Everyone invests in stock market under a faith, that he or she would get profit as a result of investment but it is a bitter truth that not all get the good results. One has to be loose if other gets profit because money is not generated here it is just transferred from loser's to winner's hand.


Because Stock market is the very vast and broad topic and so this can't be explained fully but the main thing I want to tell u is that Investing your money in the market is secured only when you have the good understanding of market. If you are a busy one and don't want to waste much of your time by sitting in front of monitor to track the market trend then you can take the help of advisory firm.I know one of the best advisories known as CAPITALVIA.They provide share tips and commodity market recommendations for intraday trading.

We are the Best share market tips provider in India for Intraday trading of cash , Nifty future and Nifty Options.We give only sure shot tips so that you can trade with high volume

No comments:

Post a Comment