The share market, also known as the stock market, is a platform where investors buy and sell shares of public companies. It serves as a crucial component of the global economy, facilitating capital raising for businesses and offering opportunities for investors to grow their wealth.
Why Invest in the Share Market?
Investing in the share market is a way to build wealth over time. Historically, stocks have provided better long-term returns compared to other forms of investments like bonds or real estate. By purchasing shares, investors can benefit from capital appreciation and dividends, making it an attractive option for wealth accumulation.

How to Invest in the Share Market?
Starting your investment journey in the share market can be straightforward. First, you’ll need to open a brokerage account with a financial institution. Once your account is set up, you can fund it and start selecting stocks to purchase. It’s wise to research companies thoroughly or consider mutual funds or exchange-traded funds (ETFs) that diversify across multiple stocks.
Types of Share Market
There are primarily two types of markets within the share market: the primary market, where new shares are issued through initial public offerings (IPOs), and the secondary market, where existing shares are traded among investors. Understanding these markets helps investors know where to buy or sell their shares.
What Is Traded On The Share Market?
On the share market, various financial instruments are traded, including stocks (equities), bonds, ETFs, and derivatives. Stocks represent a share in the ownership of a company, allowing investors to claim a portion of the company’s profits.
How are Shares Priced in the Market and Who Determines the Price?
Share prices fluctuate based on supply and demand dynamics in the market. Investors’ perceptions of a company’s future performance, along with broader economic factors, dictate pricing. Factors such as earnings reports, market news, and investor sentiment can lead to price changes throughout the trading day.
Why Do Companies Need Shares and Why Do They Have to List It?
Companies issue shares primarily to raise capital for growth and expansion. Listing on a stock exchange allows them to reach a wider pool of investors, facilitating the accumulation of funds necessary for development, research, and operational costs.
What Is a Stock Exchange?
A stock exchange is a regulated marketplace where securities, including stocks and bonds, are bought and sold. Major exchanges include the New York Stock Exchange (NYSE) and NASDAQ. These platforms provide a safe environment for transactions and offer transparency in the trading process.
What Are Sensex and Nifty?
Sensex and Nifty are significant stock market indices in India. The Sensex comprises 30 of the largest and most actively traded companies on the Bombay Stock Exchange (BSE), while the Nifty consists of 50 top companies on the National Stock Exchange (NSE). These indices provide insights into the market’s overall performance.
How to Make Money in the Stock Market?
Investors can make money in the stock market through capital gains—selling stocks at a higher price than the purchase price—and dividends, which are payments made by companies to their shareholders. A well-thought-out investment strategy, coupled with market knowledge, can significantly enhance profit potential.
Share Market Basics – Important Terms
Before diving into investing, familiarize yourself with essential terminology such as ‘bull market’ (rising prices), ‘bear market’ (declining prices), ‘portfolio’ (collection of investments), and ‘diversification’ (spreading investments across various assets to reduce risk).
Conclusion
Navigating the share market can seem daunting at first, but with the right knowledge and tools, it can be a rewarding avenue for investment. Understanding the fundamentals, from investment types to market indices, will empower investors to make informed decisions and build wealth over time. Whether you’re a seasoned investor or just starting, the share market offers a wealth of opportunities.