What is the share market ? Is the share market gambling ?Or the share market is like a business, where people invest their money. After some time, they get better returns. Today in this blog we are trying to find out what the share market is. People who talk about the share market are gambling. In this market, money losses. Is it right ? Is this vision right of people about the share market ?
Then, today we are simplyfy of the share market. Is the share market really gambling or something else ? So what is it ? Now, let me tell you very frankly and honestly. Look, what is the meaning of a share market ? Before understanding the share market, it is necessary to understand about business. To build a best business, the most important thing is money stock, a best place, and director, employee, and worker for working in company. Leaving share holders, all people are servants in the company. The company's owner is a share holder. No matter who is the owner of the company, but is it most important who is the share holder of the company ? Because he is actually the real owner of company. Companies are two types.
1,Private Limited Company (Pvlt) - Private Limited Company means this company is limited. Nobody can invest in this company. These companies don't give a share to anyone. These companies don't give permission to invest in this companies.
2 Public Limited Company ( Plt) - Like in these companies, people can invest their money and companies give them better returns after some long time. Public companies have to take money from people to grow their business because, for building a big company, you need lots of money. Then the company's owner wants investment from people in his company. He had to get his company listed in order to invest money from the public. And it is not a left-hand game to get listed with any company on the stock Exchange. This is a long process and it takes a lot of time.
What is a Stock Exchange ? - Now we will understand that a stock exchange means a company's holder is exchanging his shares. That means he is exchanging the amount of his company with the public. He is giving stock and taking money in return. There are three big exchanges in the USA.
1,NYSE- New York Stock Exchange 2,NASDAQ-National Association of Securities Dealer Automated Quotation 3,AMEX- American Express Stock Exchange.
When companies are listed on the Stock Exchange, then they get money from people in return for their stocks and from that money, the company's vision has been completed to reach one to hundred companies.
Now you tell me , till you find anything gambling ? I know your answer is, No.
Why investment is the best in the share market ?
Nothing can be better than taking shares of the best company. You can not make a better investment in your whole life than buying shares of a good company. Just think, you invest your money in a F. D. You invest your money in gold. You invest your money in property. But all these investments pale in comparison to investing in shares.
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Suppose you had money, you put it in F. D., you bought gold, you bought property, but you tell me one thing, can these three things give you money instantly ? No.
But if you start a business with the same money, you open a pizza shop. Then you open another store. That shop is also doing well. Then you open another store, then you will see if this business is going well, growing fast and people also like it. Then you will start feeling that this business can go further. But if you bought gold, engaged in FD or bought a property, would your money have grown so fast? No, because business is given to them. The elderly say,
" Don't buy a house first. All the first buy shop. " Because a house is made from a shop, a shop cannot be made from a house.
When you invest money in business, whether it is anyone's business, your own business or Apple company or Tesla, Google, Amazon or if it is of any good company, then it is called buying shares. And who is the owner of the company? The share holder is the owner of the company. The director is a servant, he takes a salary from the company. So, if you buy a share of a business, that means you have a partnership in that business, that means you have done a business. Therefore, if you buy a share of any good company, suppose you will buy a share of Google companies, Apple's, Tesla's , Amazon's and so on. If you buy shares of similar good companies, do you think the companies will continue to do business? The answer is, yes.
Will these companies keep on earning and giving you? The answer is , yes.
That's why investing in shares is the best investment. The price of shares can go up or down in the short term, but it will increase in the long term. Because business grows from time to time. Have you ever felt gambling? Even in the share market there is no gambling.
Where does gambling begin? Now I am explaining in detail where gambling began. Gambling starts with this thing, Suppose there is a stock in the market which the company launched on IPO ( INITIAL PUBLIC OFFERING) worth ten rupees but people will pay fifty rupees for this share.Now you understand what is happening ? The company is saying that my share is worth ten rupees but the demand of the people brought it up to fifty rupees.Why? Because shares are not sold on the stock market, when they are on the stock exchange, they are auctioned. Those stocks are bidding. Doesn't it matter what it's real value is ? That's why we have to see the intrinsic value of every company, we have to see its PNE ratios (Profit to earn Ratios). Now you must have understood that biding happens here. Understanding the value of the stock is a big deal.That's why shares grow very fast. You see the stock started from here and reached the very top, people made it. People understand its value too much, so you should look at the company's ratio because it matters a lot.
Tesla's profit is very high because people are buying it after the price it was launched buy because people are finding its value more. You must have understood this much. It's still not a gamble. Gambling Begins On Trading.
Trading- Gambling starts when you trade in the short term. What happens in trading? We saw a price on the graph that was up and thought it would grow. Though, guessed, this is all a gamble because the price has not increased due to our thinking, it can also decrease and luck by chance can also increase.
That's why these two things should be kept in mind before investing in the share market.
1,Fundamental analysis- If you are investing for the long term, then you should look at the fundamentals of the company. If the fundamental system of the company is good, then buy the shares, but if the fundamental system is weak, then don't buy the shares of that company. Choose the company whose fundamental system is strong and buy the shares of that company without any worries.Let the compounding of money work, it is the effect of compounding of money that makes people millionaires. This is to see the fundamental system.
2,Technical Analysis- Second is technical analysis. If someone invests in the short term, then the fundamentals will not work. But the only difference between trading and gambling is knowledge. Now no one knows whether he is playing the role, red will come or black will come, the coin is tossing, head will come or tail will come, no one knows, anything will. This is called gambling. But if someone knows trend analysis, he knows how to use indicators, he knows how to draw support registries . So technical analysis is done from there. Now, when someone does technical analysis, then it can also happen that, according to his analysis, that stock will not perform. But still, if seven or eight times out of ten his guess is correct, then it is trading.But still, if you are a beginner, then invest and do not trade. That's why most people say that they do invest. And we will also tell you that investment is the best.
Conclusion- Now you will have understood what the difference is between the share market and gambling? Buying shares of a good company on the stock market is not gambling. Trading without knowledge is gambling. Why does the country's economy depend on the share market? Your GDP depends on the share market, whatever organization is in charge, everything depends on the share market.And let me tell you one thing, there is so much money in the stock market that there is nowhere else. You see that banks have so much money. Where do banks spend their money? In the stock market. So, when everyone invests money in the stock market only, how can this be a gamble? You get a rate of interest fixed in FD. You invest in mutual funds.Where does mutual fund's money go? In the stock market. If someone buys insurance, they give fixed returns on the insurance, deposit thirty lakh rupees and. After that many years, you will get 90 lakhs. How are they tripling the insurance money? from the stock market. Because business is continuously growing. But if you live a life of ignorance, then you will keep saying that the stock market is gambling for the rest of your life and if you have knowledge of any rocking field, then you will say that gambling is for those who do not have knowledge. The only difference is that the share market is gambling or the share market is a business. Tell me in the comments what you think about the share market now? If you have got any correct knowledge from this blog, then definitely share it with those people who still consider the share market as gambling. If you are investing, this is 100℅ safe , and if you are a beginner, leave trading. If you invest in a fundamentally strong company, you are safe and also right. Because you will not get as many returns from anywhere as you will get from business. Have you ever heard that someone became a millionaire by investing in gold? You would not have heard. Have you heard any F.D. Did you become a millionaire? Would you not have heard? But you must have heard that someone became rich from the share market and became a millionaire. If you understand this, investing in the stock market for the long term is not gambling. And trading with knowledge is also not gambling. So if you want to invest in the share market, then you need a Demat account. Demat account is the account where you hold the shares. You cannot hold shares in your bank account. In today's times, you can open your Demat account very easily from your mobile on INDMONEY. COM.
