All you need to know about Stock Market
July 22, 2022
What is the stock market?
Stock markets are mainly the venues where the buying and selling of a public corporation’s equity shares take place.
Here, buyers and sellers meet and exchange stocks. These marketplaces are set up with defined rules and regulations.
There are different types of stocks:
Common Stocks, Preferred Stocks, Large-cap Stocks, Mid-cap Stocks, Small-cap Stocks, Domestic Stocks, International Stocks, Growth Stocks, IPO Stocks, Value Stocks, Dividend Stocks, Non-Dividend Stocks, Income Stocks, Cyclical Stocks, Non-Cyclical Stocks, Safe Stocks, ESG Stocks, Bluechip Stocks, Penny Stocks
Sectors in the Stock Markets:
- Real Estate
- Consumer Staples
- Communication Services
- Consumer Discretionary
Key Fundamentals to consider:
1] Research & Decide on what you need to Invest
First, the foremost necessary factor is to research and learn what the stock market is all about and then only decide to go for the investment.
As we have mentioned the different types of stocks, you need to know what kind of stocks you need to invest in.
2] Open a Demat Account
Demat Account simply helps investors hold their shares in an electronic format.
Therefore, it is mandatory to open a Demat account for stock trading.
After opening a Demat account, the Demat account number will be provided that will help you electronically settle your trades.
3] Understand the Investment Options
There are many investment options available in stock trading.
There are various sectors from which you can choose your investment; you need to figure out which sectors you have to opt for!
Besides these, many foreign companies are listed in the market; you can also consider them an option.
4] Opt for Long-term investments
It is always great to have patience in stock trading.
Long-term investments possibly have higher risks, but it also provides higher returns. The returns on long-term investments are more elevated.
All you need to do is, stop your urge to look continuously at returns and patiently wait for the more significant returns.
5] Manage your Portfolio Wisely
If you have invested in multiple stocks, you need to stay updated and manage your portfolio wisely and regularly.
If you need diversification in your portfolio, you can invest in different sectors or invest geographically in other stocks.
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