Simple Explanation Of Stock Market

Simple Explanation Of Stock Market
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 basic concepts

Stock See, the share market, Sensex, IPO, stock exchange  What are the basic concepts behind all these?  Sensex has gone up by 100 points, and NIFTY has gone down.  So what is the meaning of this?  In this video, we will discuss all the things in such a way that the person who has not  heard of these things for the first time will understand it and can go online without  any help and invest in the share market.

Stock running smoothly

Stock So if you have money then you can invest  And if you don’t have it then you have to take a loan from your friends and family  So what you did is you took a loan and invested it  and when your business started running smoothly then you paid back the amount  But after this too people aren’t stopping, they are liking your product more than ever  Now you are thinking that if people are liking it so much  Then why not start selling in the whole of Delhi? 

arrange this much

But now you will need very much money because you have to buy shops in Delhi,  employ people and your friends aren’t able to arrange this much money  So you have one option that you go to a bank for the money  The first thing is that you may or may not get a loan from the bank and the second thing  If you’ll get a loan then you’ve to pay 12 to 13% of interest and  your EMIs will also start from the next month itself and it takes time to build up a business  The EMI of the bank will be on your head when you are thinking of implementing the plan in Delhi  And this may also happen  that instead of increasing the profit you end up decreasing it. 

Angel investors

Stock In this case, there’s one more option in the market i.e. angel investor  These angel investor  doesn’t give you  money as a loan and you don’t have to give it back.  But they will take shares of your business in exchange for the money  That means partnership in your business.  Assume you made a deal  that you will get 1 crore Rs for a 10% partnership so then whatever you’ll earn  you have to give 10% of that to an angel investor  Angel investors don’t need to work with you but they’ll invest money  and will take 10% from your profit by just sitting at home.  Now you have made your name in Delhi and people are liking your product very much  After this, you thought that we should expand it to more states, so it will take more  money in this case.

Venture capitalists

And this much money will be out of angel investor’s hand  In this case, the venture capitalist can help you.  Venture capitalists are a type of companies whose work is to  find startups and businesses, provide them with the funds  And buy their shares. Venture capitalists have the capability of investing a big amount  Now you’ll say your product is also going great and you too have a very good idea  Where can we find these angel investors and venture capitalists? 

   international level and opening up branches

Assume, you took money from an angel investor by giving 10% shares  And took money from venture capitalists by giving 10% shares and after this too your  product is not stopping, people are demanding more and more. Now you are thinking  of taking it to an international level and opening up branches all over India. 

product had the capability

You started the Pani Puri business alone  but your product had the capability  and all the people are earning from it. You gave them a partnership  And all of them are earning. So that’s why in business your product should have the  power more than money. And the IPO that you bring doesn’t mean  that you’ll go to people and announce a loud speaker  There’s a process for IPO.

Bank then according

The second thing is if a company takes a loan from the bank  Then it puts its shares as a security with the bank. The base of FPO will be  the rates at that particular time.

shares of a company

where the top companies of Sensex and NIFTY are going  But the market doesn’t need to go where these companies are going  It may also happen that Sensex is going up but the stock that you are having is going down  So this may also happen. What is the definition of a big company?  The total number of shares of a company and their price  If we multiply it, then whatever amount comes  The company whose amount is higher will be the big .

companies in Sensex and NIFTY 

Now the thing is, why the value of any share is high or low?  The way that your saving account shows you the bank balance, in the same way  The Demat account shows how many shares of which company you have. 

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