What is Share Market. The Risk Taker is Always the Winner.

In our world, 80% population is middle class and poor. Only 20% population is of Rich class. There is an old saying "IF you born poor it's not your mistake but, if you die poor it's your mistake". Not taking a risk in life is the biggest risk. If the boat doesn't send in the sea, then it will not earn money by transporting goods. So always be ready to take the risk. The person who never takes risk hasn't done anything in life.

So, if you are not ready to take the risk then don't read the remaining blog. In this blog, we discuss the share market, the greatest way to become rich. The market which makes the Warren Buffet, the third richest person in life. Rakesh Jhunjhuwala (Warren Buffet Of India or king Of Bull Market), earned $1.8 billion through share market.

What is Share Market?

A Share market or stock market is the market in which the companies grow by selling their partnership to the public. In Share Market the risk taker always be the winner.

How does Share Market work?

This market is like an auction house. In this market, the person negotiates prices and do trade. In our country(INDIA), there are so many stock exchanges. The main are the Bombay Stock Exchange(BSE) and National Stock Exchange(NSE). BSE contains more than 5400 companies and NSE contains more than 1600 companies. Sensex is the index of BSE and it contains the performance of the top 30 companies. Nifty is the index of NSE that contains the performance of the top 50 companies. Sensex and Nifty shows us the average performance of companies that helps us to understand that the companies are performing excellent, good, or bad. Before investing in any company we have to check the PE of Nifty or Sensex. In Share Market the risk taker always be the winner.

PE = Price Earning Ratio

Some think that companies give us profit form their income, But it’s completely wrong. By selling their shares the company takes the money and takes itself out from the process. Now the shareholder, sell their shares to each other and earn profit from them. If the demand for shares of that company is high and sellers are low, then the price will increase, If the demand for shares is less, and the sellers are more, then the price of shares will decrease. In Share Market the risk taker always be the winner.
Remaining things like Mutual funds, Types of shares, we talk in the next blog.
Thank you
By Anmol Gupta