Learn Stock Market/Trading with our Experts - My Investing Mantra

My Investing Mantra presents a quick guide to the stock market and trading. Here you will learn the basics of the stock market along with some important definitions and differences with simple and easy to get explanations.

What is the Stock Market?

The Stock Market (like the Bombay Stock Exchange or National Stock Exchange) is basically a place where the general public can buy and sell some shares (ownership of a company) of publicly listed companies. One can open a demat and trading account and start trading.

Why it is done?

When these publicly listed companies need money without any debt then they put forward the shares of the company and ask for money in place of that. The company uses that money and spends it on its growth such as product improvement, hiring, expansion, acquisitions, etc. And when the company earns profit then the shareholder also earns through a dividend.

Stock Market Terms (Important!)

There are some terms that you must know even if you are a complete beginner. With My Investing Mantra know all these definitions will help you see the overall picture of the stock market. Let’s see all of them here.

• Bull Market

A bull market is considered when the stock prices are going upwards. This often indicates a good economy. At this time investors are much more likely to buy stocks.

• Bear Market

A bear market is the time when the stock prices are falling. At this time investors are more likely to sell stocks indicating a diminishing economy.

• IPO

IPO is the conversion of a private company into a public company. After IPO investors can directly buy stocks in that company.

• Liquidity Provision

Liquidity means the easiness of buying and selling a stock without any much loss in the stock’s price. If there is low liquidity then it will be difficult to sell the stock when wanted. Liquidity Provision means maintaining this liquidity in the market.

• Price Discovery

Price Discovery is a process in which the price of a stock is predicted by balancing the supply and demand in the market. In this process, buyers and sellers communicate to establish equilibrium.

• Economic Indicators

Economic indicators are important statistics and data which is used by investors for both present-day and future trading.

• Annual Reports

This is some sort of financial performance report released by the company every year to let their investors know how well they are performing financially.

Career Scope In the Stock Market

There are many career opportunities in the stock market. One can make a very lucrative career out of this. Let’s what are those one by one.

• Market Research Analyst

A market analyst reviews a company’s performance graph and suggests to people about buying and selling stocks.

• Financial Analyst

A financial analyst analyses financial data, makes crucial financial forecasts, and suggests investment decisions for a company.

• Risk Analyst

A risk analyst is a person who specializes in minimizing financial losses and maximizing returns by reviewing a company’s major decisions.

• Dealer

A dealer in the stock market is a person who buys and sells securities (stocks, bonds, interests, etc) from one person to another. The gap between the buying and selling price is his/ her profit.

• Investment Banker

An investment banker is someone who helps companies, governments, and big entities in raising capital, financial advising, financial modeling, mergers, acquisitions, research, analysis, etc. 

• Financial Planners

Financial planners are those people who help manage the finances of other people or companies. Their role is to help them achieve their financial goals.

• Financial Educator

Financial Educators teach and train people about investment, stock market, money management, saving, future planning, and many other important financial aspects.