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https://www.samco.in/what-is-share-market The exchange is the real Share Market where Stocks / Shares of All the companies that are listed on the Stock exchange can be bought & sold by Stock market participants through members called brokers. Samco is Leading Discount Broker in Indian Stock Market.
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WHAT IS SHARE MARKET To Understand the Stock or Share markets, one first needs to understand what stocks are:
WHAT ARE STOCKS & WHY ARE THEY TRADED? As business grows, the promoters need additional funds to scale their business & hence they approach institutions like Banks, Funds and the public with an Initial Public Offering (IPO) where they list their stocks on a Stock Exchange. The public buys these shares and the funds flow to the company. With these funds the companies can fund their expansion plans. The shareholders become part owners of the company. www.samco.in & www.indiantradingleague.com
WHAT ARE STOCKS & WHY ARE THEY TRADED? As mentioned above, shares provide part ownership of the companies they buy shares in. www.samco.in & www.indiantradingleague.com
WHY WOULD THE PUBLIC BUY SHARES? The performance of the share price generally depends on the performance of the company’s performance. In case the company does well, the share price follows. While many people are worried about losses on a day to day basis, those who have held on to good companies over a long period of time have made untold wealth for themselves! www.samco.in & www.indiantradingleague.com
WHAT IS THE NEED OF AN EXCHANGE? The exchange is the real stock market. Stocks/Shares of All the companies that are listed on the exchange can be bought & sold by market participants through members called brokers. Like all markets, participants have the ability to buy, sell or merely window shop! In India, we have two major stock exchanges: The Bombay Stock Exchange The National Stock Exchange Before the advent of computers & the internet, the Bombay Stock Exchange was the predominant exchange in India for trading shares. Investors & speculators would trade by an open outcry system, where brokers would scream orders in the "ring". With technology advancements & with the NSE launching its business in the mid 1990's, people started trading via the computers & the internet. Orders are now placed online via a brokers trading systems (back link to SAMCO Trading Software etc). The orders once cleared by the broker, would flow to the exchange for matching and execution. www.samco.in & www.indiantradingleague.com
IS THERE A DIFFERENCE BETWEEN TRADING & INVESTING? While both activities are carried out in the stock market, trading & investing are widely different activities. Trading in stock markets involves buying & selling of instruments like stocks or derivatives to profit from price fluctuations. Traders can go long i.e. buy or short, i.e. sell in order to make money. While trading is seen as a risky activity, successful traders have a system in place that is well suited to them & works for them. One must understand that like humans are unique, every trader has to create a system that works for him. A single trade for a trader generally ranges from a few seconds to a few months. Investing on the other hand is the study of companies, their financial performance & the evaluating the probability of the stock price of the company rising over periods of time. Investors are of broadly of two types: Value Investors: These investors look for undervalued companies based on their own interpretation. Growth Investors: These types of Investors buy stocks after evaluating the potential growth trajectory of the company. www.samco.in & www.indiantradingleague.com
HOW DO I TRADE & INVEST IN THE STOCK MARKET? In India, it is impossible to trade on the stock exchange without a Stock Broker like SAMCO. Once you open an account with a broker, you can trade on the stock exchanges & buy & sell stocks & derivatives as you see fit. How the Indian Trading League will make you a better Trader or Investor: As host of India’s Biggest stock market competition, SAMCO aims to introduce the element of competition & challenge the myth that the Index should be the benchmark for investors. Only SAMCO clients can participate in the Indian Trading League. All our participants compare their returns with India’s Best Investors, tweaking and improving on a daily basis to become the best, whether they be Options Traders or Long Term Investors. www.samco.in & www.indiantradingleague.com
CONTACT SAMCO SECURITIES SAMCO Securities Limited 1004 - A, 10th Floor, Naman Midtown - A Wing, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013, Maharashtra, India. 02261699000 / 02222227777 www.samco.in www.indiantradingleague.com