Pros & Cons of share market. Learn new things in easy ways .

The stock market is where stocks are issued, bought and sold. The share market is similar to the stock market. 

share market

The main difference is that the stock market helps you trade financial instruments such as bonds, mutual funds, derivatives, and corporate stocks. 

The share market only allows buying and selling shares.  

Presently there are two types of share market:- 

Primary Market:- 

This is when a company registers to issue a certain number of shares and raise money, which is also called a listing on the stock exchange.

Secondary Market:- 

After new securities are sold on the primary market, those shares are traded on the secondary market.   

The Indian stock market has turned upside down; even if there are small exchanges around the world, you should consider whether you should invest in the trade or choose some options. 

Choose as reliable and secure as FD banking and real estate. This is not a gamble in the stock market, especially given the complexity of trading associated with volatility. 

Here people buy and sell stocks, and in the process of trading, they make a profit or even lose money depending on the ratio of these stocks on a specific date. 

Pros and cons of share market:- 

Advantages of share market:  

Good return in short period of time: Even in the past, people have made excellent returns on their investments in the stock market, and you always have the opportunity to make great returns if you choose to invest in the stock market. 

With significant risk, you also have the chance to make good profits in a short time.  

Ownership of minority:- Well, this may seem like an exaggeration, but when you invest in a reputable company, you become a partner, no matter how small your stake—money in different companies. Plus, you can go outside whenever you want  

Gives right to vote:- Ownership of minorities gives you the right to vote and express your opinion at the corporate level. 

Disadvantages of share market:-  

Huge brokerage commission:- Every time a person buys or sells their shares, he has to pay a certain amount as a brokerage commission to the broker, which mainly kills the profit margin. 

Wastage of time sometimes:- Investing in the NSE is not as easy as investing in the lottery, as you must have to fill out a lot of paperwork in the process and therefore take a long time.  

 Volatile investment:-  Investing in the EEB is risky because the market is always volatile. The company's shares rise and fall many times a day. These price movements are mostly unpredictable, and investors sometimes suffer serious losses due to such uncertainty.  

Conclusion:-  Share market is a good method to earn a huge profit, but sometimes it may result in a huge loss. Investment in the share market should be made with a little extra money, not with our original income. 

 Some people try to invest in shares by taking out a loan which leads to a huge loss which results in a huge problem.  

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