The Truth About Share Market In 700 words

About Share Market

There are many things believed About Share Market but how actually is the Share Market very fewer people know. People always ask what is share market and how it works? People also look for how to invest in the share market?

           There are various misconceptions regarding share market like the price of the share will go up eventually, Share market is for rich, you must be a financial wizard to start investing, investing in share market is gambling, the share market is scam or fraud etc. misconceptions.

           The share price changes due to changes in the demand and supply of that share. If the demand for any share increases, people are ready to pay higher for that share and vice-versa.

           There are many other factors which affect share market price are,   changes in Governmental policies, wars, inflation etc. These factors are responsible for the sudden increase or decrease in the share market price.

• The market can change at any moment:

Small variations in the prices of shares are normal in the stock market. But there is an equal possibility of a sudden increase or sudden decrease in the share prices. The base of increasing & decreasing in the share price is demand and supply.

One of the truths about the share market is, the market can change at any moment. Many people follow tips from various experts but, those tips are not precise because the market can fluctuate at any moment.

Many financial experts give the guarantee about the tips they provide. They give a guarantee on the basis of their knowledge and experience. Many times, it is seen that financial experts tips getting wrong. So, we can say that the market can change at any moment.

• There are numbers of factors that affect share market performance:

It is true that the price of shares varies due to the demand and supply of the shares. But, there are other huge numbers of factors that affect market performance.

Various factors like Inflation, Political conditions, energy, weather, legislation, management changes etc. These factors affect the market performance and chances of hike or fall in the share price will increase.

• Share market tips are just plain nonsense:

There are many financial experts, share market experts or stock market gurus in the market who give tips to the investors and in return, they charge their commissions.

These share market tips from such financial experts are just plain nonsense because, as we have seen in the first point that the market can change at any moment. So, these share market tips are not so useful.

Many investors invest in particular stock after asking their financial experts and after watching media reviews on that share. It is necessary to take advice before investing but it is also necessary to do research for that stock by investor's side.

• Share market is not gambling:

Many people consider share market as gambling but it is not the truth. The reason why some people consider the stock market as gambling could be because it carries a risk of losing money.

Some people without having sufficient knowledge in share market make the investment and after losing money they also call share market as fraud or scam. Investing in the stock market requires technical analysis skill, qualitative analysis skill, knowledge about profit & loss account, knowledge about balance sheet etc.

• Share market does not require lots of money:

Another misconception regarding the stock market is, one must have lots of money to start investing in it. People also believe that the stock market is for rich people but these are just misconceptions.

But, the reality is, one can start investing in share market from his/her little savings. Many mutual funds offer schemes where people can start investing.

Conclusion:

              Share market is the place where one cannot predict exactly what will be the price of any share. People carry many myths about share market. 

People without sufficient knowledge about share market start investing in share market and when they suffer the loss they call share market as scam or fraud.

One must have perfect knowledge about the share market before investing in it. It is also necessary to take a decision regarding investment by self instead of listening to media or share market experts. So, we have discussed The Truth about Share Market.

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