Share Market is a market just like any other market. You already know different types of markets that you go every week. Fruit market, vegetable market, grocery store, fish market, clothing market, footwear market etc.
You know what a fruit market is because you know what a fruit is, Right? So, in order to understand what a Share market is, you first have to understand What is a share? Please go through it and come back.
Assuming you now know What a Share is, it should be easy to understand what a Share Market is.
Just like you go to fruit market to buy fruits, you go to share market to buy shares. In fruit market there are a number of vendors, selling different kinds of fruits. Similarly, in share market there different types of shares you can buy.
You can buy shares in Banking sector, in Auto sector, in Pharmaceutical sector, in Aviation sector, in Metal sector, and in many other different sectors.
There are a lot of companies in each of these sectors. Some of them are very Big, while others are small. For example in the banking sector, the biggest company is HDFC bank, whereas RBL bank is comparatively small. You can buy shares in either of them.
The only difference between a conventional market (like fruit market) and share market is that a Share Market is completely electronic.
It means that you don’t have to go to any physical place to buy shares of your favorite company, the way you go to buy fruits. Instead, you have to go to your computer or laptop and shop there for your favorite company.
You can think of it like an e-commerce website like amazon or Flipkart. You order a product and then in a couple of days it comes to your home (in case of share market, shares come to your Demat account in a couple of days).
So, finally Share market is a market (an electronic one) where instead of buying fruits you go and buy shares of different companies.
That was it!
Thank you so much for reading. I really appreciate that. I hope by reading this article you now know what a share market is. Please comment below if you have any question. And if you liked this article, do consider sharing it on Facebook, Twitter because it helps the blog. Thanks again for reading, I will see you in the next post.