What is Share Market? A Complete Beginner’s Guide (2025)

What is Share Market? A Complete Beginner’s Guide (2025)

🟢 What is Share Market?

The share market, also known as the stock market, is a platform where individuals and institutions buy and sell shares (or stocks) of publicly listed companies. It plays a critical role in the economy by helping companies raise capital and allowing investors to earn returns.

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🔎 How Does the Share Market Work?

When a company wants to raise money for expansion or growth, it can issue shares to the public through an IPO (Initial Public Offering). These shares are then traded on stock exchanges like NSE and BSE in India.

Here's how the system works:

• Companies list their shares.

• Investors buy or sell shares via brokers.

• Prices fluctuate based on demand, supply, and news.

• Investors aim to earn profit through price appreciation or dividends.

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🧠 Why Do People Invest in the Share Market?

There are several reasons:

• 💰 To grow wealth over time.

• 🏦 To beat inflation.

• 📈 To generate passive income via dividends.

• 🔁 To take advantage of market trends.

But remember: with higher returns comes higher risk.

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🧰 Types of Share Markets in India

1. Primary Market – Where companies offer shares for the first time (IPO).

2. Secondary Market – Where existing shares are traded between investors.

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🧮 Popular Stock Exchanges in India

• NSE (National Stock Exchange)

• BSE (Bombay Stock Exchange)

Both are regulated by SEBI (Securities and Exchange Board of India).

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🧾 Documents Needed to Start Investing

To invest in the share market, you need:

• PAN card

• Aadhaar card

• Bank account

• Demat & Trading account

✅ Read this guide:
👉 What is a Demat Account and How to Open One?

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🔀 Types of Investments in Share Market

• Equity Shares

• Mutual Funds

• Exchange-Traded Funds (ETFs)

• IPOs

• Index Funds

Each comes with its own risk-reward ratio.

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⚖️ Risks Involved in Share Market

No market is risk-free. Be aware of:

• Volatility

• Market crashes

• Company-specific risks

• Emotional trading

📘 Suggested read:
👉 Intraday Trading vs Long-Term Investment – Which is Better?

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📈 How to Start Investing as a Beginner?

1. Open a Demat and Trading Account.

2. Learn the basics (like reading charts and news).

3. Start small – invest ₹500 or ₹1000.

4. Stay updated with financial news.

5. Don’t follow crowd blindly.

📘 Beginner's Guide:
👉 How to Invest in the Stock Market?

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📌 Tips Before You Invest

• Avoid panic selling.

• Do your own research (DYOR).

• Understand the business you’re investing in.

• Follow financial blogs like Market Gyaan.

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✍️ Author: Market Gyaan

We aim to simplify finance for every Indian. Follow us for stock market tips, guides, and updates.

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📌 Internal Blog Links Recap:

1. How to Invest in the Stock Market?

2. What is a Demat Account and How to Open One?

3. Intraday vs Long-Term Investment

4. Best Stock Market Apps in India (2025)

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📄 Disclaimer:

This content is for educational purposes only. Investments are subject to market risk. Please consult a SEBI-registered advisor before investing.

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