Stock Market For Beginners 

Stock Market For Beginners 

Stock market for beginners. In this post we going to see about how to list your company in stock market and a introduction for beginners about stock market and you can translate this blog into Tamil using google translater. So now let's jump into our content.

There are Two methods to start your own company 

Stock Market For Beginners 

This post is purely for beginners because people who already know might be bored This post will not be too technical I'm going to teach you the same way as I do to my friends I will mostly avoid technical terms Coming to the topic, the main reason for the stock market. For example, you own a company, you can run that company in two ways,

1. Bootstrap Method :

Stock Market For Beginners 

One of the ways is the bootstrap method It means that you fund your own company and use your revenue to expand the company, For example, Zoho company is valued at around 2-3 billion So Zoho company is not a public listed company It also doesn't get any outside funding With the company's profit they expand their office, team, products. So this is what is called a bootstrap company.

2. Angel Investors, Venture Capitalist and Stock Market :

Stock Market For Beginners 

So the other method is by raising funds through angel investors, the venture capitalist. Then the next one is IPO which is the stock market, First, let us see about angel investors and the difference between funding from angel investors & the stock market

1. Angel Investors :

Stock Market For Beginners 

Angel investors would take high risks If I have a product to market & sell, I would at least need a team a marketer, a design team, customer support, and for all these I would need capital Because all I have for now is a product and nothing else So I will go and explain about my product to the investor & if he likes it he would invest That first round of investing is known as angel investing. (Tamil)So, in case after investing I'm able to scale the business & generate good revenue.

2. Venture Capitalist :

Stock Market For Beginners 

I will go to Venture Capitalist, who then would invest more into my company But the biggest risk-taker here would be angel investors Let's say I got funded by VC & opened my company in many locations I have opened 2 or 3 branches, and even my company is doing good.

3. Stock Market :

Stock Market For Beginners 

The next step that I would take will be I would need 200cr for opening factories in different states But I would need investment for that I've got two options here, one is loan & the other is IPO That is, listing my company with the stock market You might know about the loan, mostly you wouldn't get it else there would be a lot of process & liabilities Whereas for an IPO, you should approach SEBI, show your 5 years revenue Show your product, dream and explain everything to them If SEBI acknowledges you as a healthy company.

They would approve for IPO then they would list the company for an IPO, do marketing, advertising that there would public listing for this company and you could invest then the investors would be presented with the company's goal If the investors are interested they would invest in that company. So the important thing here is, there might be two owners for the company In the stock market the company shares would be divided into large sums The company's shares are divided and then given a price for a single stock.

The price bands are very complicated to understand As for the stock market, for example, if you own a share of Infosys you are an owner and a part of that company, For example, Mark Zuckerberg owns only 11% of Facebook still he is a billionaire and also the rest 89% are owned by others Other in a sense, 20% with the board of directors and 60-70% retailers Just with 11% of Facebook he is a billionaire! 

What is Stock Exchange and why do we use Stockbrokers?

As a retail investor, how would I earn in the stock market would be the question Before that let us talk about two things

1. Stockbrokers :

Stock Market For Beginners 

First is, stockbrokers and their role, Stockbroker & Stock exchange are the middlemen between us & the company Brokers would be the connection between us and the Stock Exchange The orders you place, that is, buy order, sell order, limit order That is, NSE can be referred as stock markets engine.

2. Stock Exchange :

Stock Market For Beginners 

Secondly, Stock exchange and its role, There are two Stock Exchange, that is, NSE & BSE. So NSE is where we often trade Due to the Harshad Mehta scam NSE got promoted The government brought the NSDL concept into NSE for transparency that is you could buy & sell shares electronically through NSE We could say that NSE is the engine of the stock market.

So now Stockbroker is someone between us and NSE Stockbroker would be the medium for us to buy & sell Back in those days, you had to call and place an order to buy or sell the system wouldn't be transparent and they would take 1-2% from our money, For example, if you buy shares for 1 lakh then he gets 1000 for both buying and selling. So if you buy shares worth 1 lakh and sell them for the same price you would still get 2000 loss, Discount brokers came into India only after 2007. It was a breakthrough in the Indian stock market 

Zerodha : 

Stock Market For Beginners 

So now the brokerage is flat 20, the broker I'm using is Zerodha, Zerodha is best for beginners as it is user friendly & easy to use. I've been using Zerodha for the past 4 years. The main reason is that they are user-friendly, good brokers, and come up with new updates. So these brokers would help us to buy & sell shares. So what I taught you was only a small part of the stock market.

                    Thank you😍😍😍

                 நன்றி வணக்கம்🙏🙏🙏