What Is Basics Of Share Market?
I would like to know the basics of share market,I want to become a investor in that but I don't know what is that?Can you explain me in detail?
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Well i think you belong to Pakistan. You can invest in Karachi, Lahore or Islamabad Stock Exchange if so. The share market is basically a secondary market where people having the shares of public limited companies can float their shares. They can easily buy and sell the shares in share/stock market. The public limited companies sell their shares to common public through "IPO" or "Initial Public offer". Then who ever buys the shares of those companies, becomes a shareholder. Then these share holders need a place where they can sell these securities for a profit. Stock market is such place, which not only determines the price of the share( through demand/supply mechanism, and performance of the companies) but also give them a chance to buy other shares, which they think are more profitable or valuable.
There are brokerage houses/brokers, who sell/buy shares on the behalf of common investors. So you don't deal with the shareholder directly, but you open an account with some minimum balance with a broker, and ask him to buy or sell particular shares. He carries out your orders. It needs extensive knowledge and commitment to invest in a stock exchange. I would suggest you to open an account with an investment bank. They have professionals, who invest in stock exchange, foreign exchange, bond market, and other things for you. They earn handsome profits for their clients.
There are brokerage houses/brokers, who sell/buy shares on the behalf of common investors. So you don't deal with the shareholder directly, but you open an account with some minimum balance with a broker, and ask him to buy or sell particular shares. He carries out your orders. It needs extensive knowledge and commitment to invest in a stock exchange. I would suggest you to open an account with an investment bank. They have professionals, who invest in stock exchange, foreign exchange, bond market, and other things for you. They earn handsome profits for their clients.
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I used to work in the international stock exchange arena, and I would strongly suggest to you that you do a lot more than just asking a question on blurtit before risking your money. Unless you have a computer system (you can buy them from various companies who sell them) which gives you live updates on share prices and plenty of background information, you will be at the mercy of more experienced investors who will beat you to it when it comes to making a good profit. You don't have to invest in a stock exchange in your own country, you can invest all over the world, but you need to have really good knowledge of companies and how the markets behave unless you are already so rich that you don't mind losing money. And that is the biggest rule to live by when investing the stock market: Can I Afford to Lose This Money? Because as often as not, you will lose. Don't forget, it is a form of gambling, so if you are going to cry when you lose several hundred or several thousand pounds - don't do it! Invest in something more stable like property.
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