What is the stock market
GOOD RISK OR BAD RISK
Firstly you decide this how much risk you can take if you are young can put more money in the stock market and you will have to take fewer risks you are sixty years old also, look at how much you will get from the risk are you taking if you are having a profit of $10 then and lose $20of the lose then you must don’t.
Invest this manner every company needs money to Grows the company founder have money then you can put money in it.
And also convince some rich people that they rise the money from them or put money through public funds.
The company in public fund takes money. from the general public he offers this lot to the stock market. that is called an IPO.
IPO Stands for Initial Public Offers then you guys buy these stocks through IPO and become a partner of the company this is how the company goes to grow money.
For example, one Company Cost $3 Crores to and we brought out of it three lakh then each of this share will cost $100 and then if you buy it’s twenty shares then you will become an owner of Two thousand of that company.
And you will become of the partner of Two thousand in that company so call it stock and you’ll become the stockholder of that company then the company grows in Six crores in future one of her shares will increase from $100 to $200 and the two thousand RS. Four thousand when made by your investment.
And if the company goes to lost to one crore then one of your shares will become inflation when you won’t you can have your stock as a baker as a profit from the company it same time divide it into its stocks holder money gives money to its shareholders or give you the stock call him dividends.
Share of the company increase when the people of it want to buy then we call him universal law of the market.
- IF demands go up
- prices go up
- and viceverse
I will tell you what is simple rules you should invest in a company when its stock price is less when its price increase after that either you let him sold either immediately withdraw the money or else leave it there only to improve with intention of intention and you should also keep in mind how is the background of the company in which you are investing
How much dividend he has earned over the last few years and how much dividend his shareholder has foundered. How is that company team and at the same time you have understood the company in a good way.
How it is and then decide whether you are worth investing in that company and then you have to look at how many chances of doing grow in that company future in the future if the chance that he grows the company then only do you invest the money in it you’ll be thinking is of immense advantage in the company of technology and game yes it is right she does live in the market much day, people get before of same game game game whether it is PUBG OR MARIO such company are good are goods for earning profit in the t term at is the long term only fail because people want something new. To earn too many advantages you have to invest in a company longterm.
so you don’t be afraid to take risks.
risk happens in everything.