Investment in the stock market is one of the best investment mediums. Every day many new faces are entering the stock market. The confidence of investing in the stock market is increasing day by day as the market is more stable than ever before. Today’s post is for those who are brand new.
Those age 5 or over can invest in the stock market. Boys and girls open the stock market for everyone. We all know what, why, how to open a bank account. Simply put, a bank account is an account or accounting medium where money is exchanged. Right?
Likewise, an account is required to invest in the stock market. Whose name is BO Account. Share transactions are done through BO account. How to open a BO account .
There are usually two types of stock market in our country. The first IPO market and the secondary market. The IPO market is fairly risk free. You can read here – What is an IPO, how to apply for an IPO.
Many compare the secondary market with the grocery store. Just like a grocery store has many products, the stock market has many companies. Suppose there are 5 products in a grocery store, many of them may be up to 3 years ago, and 3 days before. Now the grocery retailer will drop the product that is not being sold? No never
The stock market is a market where people come to buy shares of different companies. To make a profit by buying a company stake for a specified period.
Let’s talk about an example.
Mr. Khan bought 3 shares of ABC Company at a rate of Rs. His total investment is Tk 5,000. After 6 months he sold the stock at a rate of Tk 20 and he earned Tk 25,000 in 6 months. With the profit, the amount of his money increased to Tk.
In the same way, it can be the opposite. It may be that he has sold less than 4,000 rupees in 6 months. So choosing the right company at the right time can make good profit.
This article is basically the basic idea. You can see our capital market category for details on the stock market