The share market, also known as the stock market or equity market, is a platform for buying and selling stocks or shares of publicly traded companies. When you buy a share of a company, you become a part-owner of the company, and your ownership entitles you to a portion of the company's profits and assets.
Here are some key terms to understand when it comes to the share market:
Stocks or Shares: These represent a unit of ownership in a company.
Stock Exchange: It's a marketplace where stocks are traded, such as the New York Stock Exchange (NYSE), NASDAQ, or Bombay Stock Exchange (BSE).
Stock Index: It's an indicator of the overall performance of a group of stocks, like the S&P 500 or the Dow Jones Industrial Average.
Bull and Bear Markets: Bull markets are characterized by a rising stock market, while bear markets see a declining market.
IPO: Initial Public Offering is a process where a private company offers its shares to the public for the first time, to raise capital for growth and expansion.
Dividends: A portion of a company's profits paid to shareholders.
Trading: Buying and selling stocks on a stock exchange.
It's important to note that the share market can be volatile and risky, and it's essential to research and understand the risks associated with investing in the stock market. It's recommended to consult with a financial advisor before making any investment decisions.
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