The share market is the place where companies raise funds to grow their business, while investors invest money with the motive of future benefits. Companies need funds to manufacture goods, build infrastructure, give incentives to employees, and fulfill many more expenses. And to meet those expenses, the company raises funds by issuing shares or debentures in the market.
The stock market is the platform where all the companies are listed for trading. Investors who are in need to invest their money in the market choose a proper company where they can invest their money and expect benefits in the future.
Investing in shares can be a better option than investing in real estate or gold because shares and debentures have high returns in comparison to any other investment. It will make you richer in less time if you have excellent investment decision-making skills.
To be a better investor, one should have sound knowledge about the companies and their share. They should regularly read about the strategies made by the company and after accumulating all the information, invest in the company in which there are more chances of getting returns. To gain some knowledge in shares, you can learn trading online.
In today’s world, everything is moving forward. From shopping to studying everything can be done at your fingertip. There are many free and paid online stock trading courses available on the internet, which will provide you with all the necessary knowledge about trading, and with that, they will also provide you with certification regarding trading.
Different Types of Financial instruments traded in the market
Some of the main financial instruments are traded in the market are compiled below in brief-
Bonds are the debt instruments, they have the least risk involved compared to other instruments. They are also diversified in different categories like simple bonds, government bonds, corporate bonds, and zero-coupon bonds.
These are also debt instruments like bonds but they are generally not backed by assets. The rate of interest is higher in these instruments and it is quite safe to invest in debentures. Usually, the debenture holder gets the interest earlier than the shareholder.
- Mutual funds
Mutual funds are the type of instrument where the money is collected from different investors, where each investor’s shares are presented as units. The value of the unit fluctuates frequently, and the risk involved in mutual funds is moderate.
- Treasury bills
Treasury bills are short-term debt instruments that generally get matured within one year. They are regulated under the security of the government. investors can buy the bill with the secondary bond market.
There are several ways where you can invest your money. But, primary, each has its pros and cons investing. Let’s see different types of markets where you can invest your money.
Types of market
Here are two common types of markets.
- Primary market
The primary market is the market where organizations issue securities, bonds, and shares to raise funds, and grow their business. These companies are registered to raise some amount from general investors, which is also known as the stock market. The company which is going to issue shares for the first time is part of the primary market, which is also known as the Initial Public Offer (IPO).
The procedure to apply for an IPO is first to make a DEMAT account through which your trading account is linked. This can be done online as well as offline. The company hires a merchant banker for the IPO procedure after that, the company makes a statement where all the details about the company are mentioned. That statement is now submitted to SEBI for approval to be eligible for IPO.
After getting approval from the SEBI, the company can advertise its IPO offerings through different sources like advertisements on television, advertisements in newspapers, radio, etc. The motive is to spread awareness about the IPO offerings so that the investors get to know about the company and they can invest in the company.
The price of the shares should be decided according to the guidance made by SEBI, too much of a discount on shares can make your company a great problem. Investors who will feel your company is providing shares at reasonable rates will apply for your share.
- Secondary market
The secondary market refers to that market condition where new securities have already been held in the primary market. At this stage of the market, investors can issue the share with the help of the broker at any price, which is agreed by both parties. Some amount has to be transferred to the broker in this stage because the broker does the job of finding appropriate clients.
There are two types of markets – primary and secondary markets. But before you plan to invest your money it is important to understand the most common trends in the market. There are two common stock market trading.
● Bull market – bull market is a market situation where the price of the stock is always rising. Here investors gain high interest and prosper financially.
● Bear market – bear market refers to the market situation where the price of the stock does not rise normally. They tend to decline or stay the same for a long period of time.
Investing for beginners
One of the basic problems in our education system is that they do not provide information regarding personal finance and investment. For learning personal finance and multiplying your income, learning trade online is the best alternative.
But while investing you need to understand that risk and opportunities go hand in hand. The higher the investment, the higher will be the risk involved. Investors need to carefully consider their risk tolerance when selecting investments.
1. STOCK MARKET COURSE
Learn stock trading from all the resources available on the net, understand them, and then think about whether you are interested in learning about the stock market or not. If you are, then go for a well-paid course. There are several free online stock market courses that train you to master investing. Joining an online course in the stock market helps develop necessary skills.
2. LOOK FOR MENTORS
To get good knowledge, good mentors are necessary. They will help you to be on the right track. Hence, when choosing any paid course look for teachers with expertise and training in trading.
3. CURRENT AFFAIRS
Even if you have enough information about the stock market that you have gained from the online stock trading course, this is not sufficient. You need to update yourself with all the upcoming companies and their financial position. Go for a company with a sound financial position that takes care of its shareholders. The risk involved in the share market is high, so make your decision wisely.
Where to Find Online Stock Market Course
If you plan to learn stock trading online then try IFMC Institute’s online stock market courses. IFMC offers top-rated courses in stock trading that will walk you through an introduction to the stock market, technical analysis, and trading strategies required to build up your portfolio. The benefit of joining IFMC courses is that they are simple to understand for a common man. Anyone can take this course and start trading independently.