Share Market Beginner :
Investing in Simple Language and Making Money” is a guide that teaches beginners.
how to invest in the stock market. It will help you understand the basic concepts,
terminologies, and investment strategies of the stock market.
Shares are a vital component of the economy, serving as a platform for buying and selling publicly traded companies.
The share market plays a crucial role in the overall economy by providing a platform for buying and selling shares of publicly traded companies. Its importance can be understood from various perspectives
1. Capital Formation:
Companies can raise capital by issuing stocks to the public through initial public offerings (IPOs). This capital infusion enables companies to expand their operations, invest in new projects, and create job opportunities. This, in turn, contributes to economic growth.
2. Investor Participation:
The stock market allows individuals and institutional investors to participate in the ownership of companies. Investors can buy and sell stocks, potentially earning returns through capital appreciation and dividends. This participation encourages savings and investment, fostering wealth creation for individuals and organizations.
3. Corporate Governance:
The stock market serves as a mechanism for corporate governance. Shareholders, as partial owners of a company, have the right to vote on important decisions, such as the appointment of board members and approval of major corporate actions. This accountability helps ensure that companies are managed efficiently and in the best interests of their shareholders.
4. Price Discovery:
Stock prices are determined by supply and demand in the market. As investors assess the prospects of companies, stock prices reflect the perceived value of those companies. This price discovery mechanism facilitates efficient allocation of capital to businesses with promising growth prospects, contributing to overall economic efficiency.
