The stock market can seem complicated at firstābut once you understand the basics, it becomes a powerful tool for building wealth. Whether you’re planning for retirement, saving for a major goal, or just want to grow your money, investing in the stock market is one of the best ways to do it.
What is the Stock Market?
The stock market is a marketplace where investors buy and sell shares (also called stocks) of publicly traded companies. When you buy a stock, you’re buying a piece of ownership in a company.
For example, if you buy shares of Tata Motors or Apple Inc., you become a partial owner in those companies.
Why Do People Invest in the Stock Market?
ā
Wealth Creation: Historically, the stock market has given better returns than fixed deposits or savings accounts.
š Beat Inflation: Investments in stocks grow over time and help your money retain its value.
š Liquidity: You can buy or sell stocks easily through online trading platforms.
š¼ Ownership & Dividends: Some companies pay you a part of their profit called dividends.
Key Terms You Should Know
Stock: A share of ownership in a company.
Broker: A platform like Zerodha, Upstox, or Groww that lets you buy/sell stocks.
Portfolio: A collection of your investments.
Bull Market: When prices are rising.
Bear Market: When prices are falling.
IPO: Initial Public Offering ā when a company offers its shares to the public for the first time.
How to Start Investing in India
Open a Demat and Trading Account with a broker (Zerodha, Angel One, etc.)
Do KYC verification online.
Add funds to your trading account.
Start with blue-chip stocks like Reliance, Infosys, TCS.
Invest for the long term, donāt chase quick profits.