Stock market as you all know, in the most basic form, is a place where any one can sell or purchase their stocks in a particular place. Many people are interested in this field and even invest their earnings in various portfolios but there are also some people who don’t know about it what exactly it is and even they have a fear of this money- making platform. In this blog, I will share with you some most common questions about share market and try to figure out all your doubts about stock market in basic terms. So the first and the most commonly asked question is,
IS SHARE MARKET RISKY? So the answer is yes. It might be risky. Let us take an example. Suppose you are investing some money in your friend’s business and you become the owner of that business as per your share holding proportion. If the business runs well, it will provide you profits but in case it become insolvent, you also have to face a loss. So by this way , if you are going to invest your money in any company, you become owner of that company as per your number of shares purchased. And if the company faced any loss, it will also harm you.
WHY STOCK MARKET HAS A BAD NAME? Stock market due to its risk factor is badly reputed. But this has happened due to people’s own negligence. What sone people do is, they purchase a share for a short span and when the rate goes up , they sell it. But it never means that you have profits in that condition. It just depends upon luck. We can’t say it as a wise investment. A wise investment is that you have to place your money in different portfolios and forget about them for atleast 4-5 years. Means that you should invest in a long run. People always claim like this that their money got doubled in just 2 days or something else like that but believe me it is just luck based. It will be like gambling in this market. In a survey, it was found thar the nurses were the best investors because when you do any investment, due to their busy schedule, they don’t have any time to look after their share holdings again and again but after a long time , the amount gains well
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