1. What is the stock market?

Shares of companies are bought and sold in the stock market.. It allows businesses to raise funds and investors to own a part of a company.

2. Stocks and shares

A stock represents ownership in a company. By buying shares, you own a small portion of that company and can benefit if its value increases.

3. How the stock market works

The stock market functions through exchanges like NSE and BSE. Prices are determined by supply and demand. Investors place buy and sell orders, and trades happen at an agreed price.

4. Types of stock markets

• Primary Market: A place where companies sell new shares to the public for the first time through an IPO.
• Secondary Market: A place where investors trade existing shares with each other.

5. Bull market vs. Bear market

• Bull Market: Stock prices go up, and the demand for stocks is high. This upward trend encourages more people to invest in the market.
• Bear Market: Stock prices are falling or are expected to fall. This price decline happens because either the economy is facing a downturn or there are other negative factors.

6. Important stock market concepts for beginners

• Dividend: A part of the company's profit given to people who own its shares.
• Portfolio: A collection of your investments.
• IPO (Initial Public Offering): When a company sells its shares to the public for the first time.

7. Why companies issue stocks

Companies issue stocks to raise money for business expansion, projects, or reducing debt. Investors benefit by owning shares and potentially earning returns.

8. Investing vs. Trading

• Investing: Long-term buying and holding of stocks for growth.
• Trading: Short-term buying and selling to make quick profits.

9. Mutual Funds vs. Stocks

• Stocks: Direct ownership of shares.
• Mutual Funds: A professionally managed pool of funds invested in multiple companies.

10. Stock Market Index

A stock market index tracks how a specific group of stocks is performing. Examples include Nifty 50 and Sensex, which track top-performing companies.

11. Stock Market Risks and Rewards

• Rewards: Gain through rising prices or dividends.
• Risks: Market fluctuations can lead to losses.