For what and whom will this be helpful?
First of all I need to clear all of you that this is NOT any sort of financial advise 🙅🏼. It is a post to improve your financial knowledge 🧠
Investing is an interesting thing and this post is just my personal opinions about it . Personally I think this will be helpful for everyone reading this , because it is such a useful knowledge to get which I have learned a little bit recently. So without any further do let's get into the topic.
Hey everyone,
Good morning 🌄 or noon 🌞 or night 🌕 , or whatever time you are reading this post
This is my personal guide (just what is what basics , there is a ton you need to know to really invest in something) about stock markets and the best way to invest which I have learned recently again don't take it as a financial advise these are bit of a basics about this topic
1.What is a Stock market?
So , Have you ever been to a market? If you are anything like me you would have seen a place where vegetable 🍆 renders selling their stuffs and some buying it . Similarly if a company sells some part of it's ownership ( why ? in order to get a capital investment 💰 for the company) to the people at a specific face value ( the value at which the part of the ownership is sold ) and some people buying those shares , these people are called as Share holders .This place is known as Share market or Stock market . This is more of a basic explanation, You can dig deep into this topic by following the links below 👇 .Now that you have understood what is a Stock market , what is a share and share holders , let us understand why investments are better rather than a simple savings account.
2.Why investing is better 📈?
In this section we are dealing the topic which is the most interesting part of investing.
For example let us say you have 100 units of money ( eg 100$ ,💷) you save it in a bank which has a interest rate of 1% ( it is normally less than this ) so your money increases by one percent every year but there is non negotiable thing about money that is inflation . In economics, inflation (or less frequently, price inflation) is a general rise in the price level in an economy over a period of time . So your 100 units of money even raised by the savings account will not match the inflation as it is an average of about 2 to 2.5 percent per year . In order to avoid this loss of money the best way or in my knowledge the only way is to invest in something like a stock market.
3. How does a stock market work 💲 ?
For many years ( when I heard of people making a profit from stock market ) I used to think , Ok may be if we invest in a stock they may give us a percentage of profit which I recently discovered was completely WRONG 🙅🏼. How does it works is that initially in the process if person can buys a share (nowadays through online ) and if the company makes a good profit 📈or progress the value of the stock goes up gradually and when you decide to sell the share you have purchased it will worth more and thus you make a profit 💰 .
For example ( imaginary ): Let us say you buy 1000 shares from a XYZ company whose shares cost 10 units each then let us say after 5 years the company had made a progress and their shares now cost 11units each so, if you sell those 1000 shares now it makes you a profit of 1000units of money.
I think now you may got a clear picture of how it works .
So , in this post I have tried to share my knowledge about stock markets and shares , if you have a suggestion or a wrong idea being shared here please let me know in the comment down below.
In upcoming posts I will try to discuss about how we can buy shares and what shares are profitable and whether stock markets are risky etc.... So feel free to subscribe ⚡and also share this post .
If you want to dig deep into this topic of improving your financial knowledge you can by using the links 🖇️ below👇
These are not any sort of affiliate links
Books , videos that I found useful.
Hope you have good day 😀!
Shiva.