Technical analysis predicts future price movements by analyzing historical price and volume data using charts, patterns, and indicators. It helps traders make buy/sell decisions based on patterns and trends in the market.
The share market, also known as the stock market or equity
market, is a marketplace where publicly traded companies’ stocks or securities
are bought and sold. It provides a platform for companies to raise capital by
selling shares of their ownership to investors and for investors to buy and sell
those shares to make profits.
The share market operates through exchanges where buyers and
sellers can trade securities, such as stocks, bonds, mutual funds, and
exchange-traded funds (ETFs). The prices of these securities are determined by
the supply and demand in the market, as well as the perceived value and
performance of the underlying companies.
The stock market can be influenced by various factors,
including economic indicators, company performance, geopolitical events, and
investor sentiment. As such, it can be volatile and subject to sudden shifts in
sentiment or unexpected events. However, over the long-term, the stock market
has historically provided investors with a means of growing their wealth and
participating in the success of the global economy.
An exchange in the stock market is a marketplace where stocks,
bonds, mutual funds, and other securities are traded. It is a regulated platform
that facilitates the buying and selling of securities between investors and
issuers.
The exchange provides a centralized and transparent platform
for investors to trade securities, ensuring fair and efficient price discovery,
as well as providing a level of security and confidence in the trading process.
The exchange provides a platform for buyers and sellers to place orders, which
are matched based on specific criteria such as price, time, and volume. This
helps to ensure that all market participants have equal access to the trading
process.
There are several major stock exchanges around the world, such
as the National Stock Exchange (NSE) Bombay Stock Exchange (BSE) New York Stock
Exchange (NYSE), NASDAQ, London Stock Exchange (LSE), and Tokyo Stock Exchange
(TSE). Each exchange has its own set of rules and regulations that govern the
trading process and ensure fair and efficient market operations.
A Demat account, short for dematerialized account, is an
electronic account used to hold and trade securities such as stocks, bonds,
mutual funds, and exchange-traded funds (ETFs). It is similar to a bank account,
but instead of holding cash, it holds securities in a digital or electronic
form.
In the past, shares and other securities were held physically
in the form of share certificates, which made trading and transferring
securities a cumbersome process. However, with the introduction of Demat
Accounts, the process of holding and transferring securities has become faster,
easier, and more secure.
Opening a Demat account is necessary for trading securities on
the stock market, as it serves as an intermediary between the investor and the
stock exchange. Demat accounts are maintained by Depositories, such as the
National Securities Depository Limited (NSDL) and Central Depository Services
Limited (CDSL), in India.
A trading account is an account used by an individual or
organization to buy and sell securities such as stocks, bonds, and other
financial instruments on the stock market. It is typically opened with a
brokerage firm, which acts as an intermediary between the trader and the
exchange.
A trading account allows investors to place buy and sell
orders for securities, view real-time market data, track their portfolio, and
manage their investments. To trade securities, investors need to fund their
trading account with money or other assets
Trading accounts can be opened with stockbrokers or brokerage
firms that are registered with stock exchanges. These brokers charge a fee or
commission for their services, which can vary based on the type of securities
traded, the volume of trades, and other factors.
Trading accounts are typically associated with a specific
trading platform or software, which allows investors to access the stock market
and execute trades. Many brokerage firms offer online trading platforms that can
be accessed from anywhere with an internet connection, making it easier for
investors to trade securities.
A trading account is an account used by an individual or
organization to buy and sell securities such as stocks, bonds, and other
financial instruments on the stock market. It is typically opened with a
brokerage firm, which acts as an intermediary between the trader and the
exchange.
A trading account allows investors to place buy and sell
orders for securities, view real-time market data, track their portfolio, and
manage their investments. To trade securities, investors need to fund their
trading account with money or other assets.
Trading accounts can be opened with stockbrokers or brokerage
firms that are registered with stock exchanges. These brokers charge a fee or
commission for their services, which can vary based on the type of securities
traded, the volume of trades, and other factors.
Trading accounts are typically associated with a specific
trading platform or software, which allows investors to access the stock market
and execute trades. Many brokerage firms offer online trading platforms that can
be accessed from anywhere with an internet connection, making it easier for
investors to trade securities.
Margin in the stock market refers to the amount of money an
investor borrows from a broker to purchase securities. When an investor buys
securities on margin, they are essentially using leverage to increase their
purchasing power in the market. This allows investors to buy more securities
than they would be able to with just their own funds.
To buy securities on margin, investors must put up a portion
of the total purchase price as collateral, known as the margin requirement. The
remaining amount is borrowed from the broker. The margin requirement is usually
set by regulatory authorities or the broker, and can vary based on factors such
as the type of securities being traded and the volatility of the market.
While buying securities on margin can increase potential
profits, it also carries significant risks. If the market moves against the
investor, the losses incurred can exceed the initial investment, and the
investor may be required to deposit additional funds to meet the margin call. If
the investor is unable to meet the margin call, the broker may liquidate their
securities to recover the funds.