Understanding equity is paramount to beginning your investment journey across stock exchanges in India.
A company requires funds for its businesses and to meet its working capital requirements. To receive funds,
it can resort to both debt and equity instruments. It can provide its shares or stocks through Initial Public Offerings (IPOs) to investors as part of raising funds through equities or offer loan instruments with fixed interest rates,
known as debentures. The share market in India is quite popular among retail investors as well as institutional investors. The Indian stock market is quite popular among international investors due to its high returns, especially in
the primary markets.
The Indian Stock Market is a financial market wherein many securities, including equities, bonds, ETFs and derivatives, trade on exchanges at prices determined by demand and supply. SEBI in India regulates
the stock exchanges. There are two major stock markets in India- NSE, the National Stock Exchange of India and BSE, the Bombay Stock Exchange. Taking an example, the price (or value) of the share depends on the company's value and
how many shares it has issued. Suppose Company A is making more money than Company B. In that case, its shares will be worth more - and so will your share in Company A.
The price goes up and down depending on what people think
about the prospects for the company and what they believe its competitors are doing. The price is marked every day in newspapers or online trading; most importantly, it's marked at the end of every day when the stock market closes.
The closing price is used to calculate how much you would have made if you had bought a share earlier in the day and sold it at close - this is called profit or loss for that day.
The Indian share market is a fascinating field
for all investors. It is a great place to invest your hard-earned money and earn excellent returns on them. The Stock Market is a great way to add to your wealth and investments. It provides a massive scope for trading in shares and
capital markets, not limited to anyone.