Share Market Basics for Beginners | Share Market in Hindi

Summary

This video script offers a comprehensive guide to the stock market, suitable for beginners to experts. It tells the story of Warren Buffett and other billionaires who started investing young, emphasizing the importance of financial literacy. The script explains the purpose of the stock market, the process of investing, dividends, and the impact of stock splits and bonus shares. It also introduces market capitalization and the categorization of companies into large-cap, mid-cap, and small-cap, using relatable examples and encouraging viewers to deepen their understanding through the series.

Takeaways

• 😀 The video is designed to educate viewers from all backgrounds about the stock market, with the goal of making them among the 2% who understand investments and the stock market well.
• 🎓 It covers the stock market from beginner to expert levels, ensuring a comprehensive understanding for viewers at any stage of their financial literacy journey.
• 👦 The script introduces Warren Buffett's early financial endeavors, emphasizing the importance of starting investments at a young age and the potential for significant returns.
• 💼 It highlights the role of the stock market as a platform for businesses to raise capital by issuing shares to the public, making them shareholders in the company.
• 📈 The video uses the example of Wipro and Infosys to illustrate the potential for substantial returns on investment, including dividends and the growth of initial investments over time.
• 📊 The concept of dividends is explained as a share of company profits distributed to shareholders, with the decision to distribute dividends being at the discretion of the company's Board of Directors.
• 📚 The script provides a brief history of the stock market, including the transition from physical share certificates to Demat accounts and the online trading that is prevalent today.
• 💻 It explains the necessity of a Demat account for investing in the stock market and mentions Upstox as an example of a brokerage firm that offers such accounts.
• 🔄 The video introduces the concepts of stock splits and bonus shares, which are mechanisms used by companies to increase the accessibility of their shares to a broader range of investors.
• 🏆 Market capitalization is presented as the key indicator of a company's size, rather than the share price alone, and is calculated by multiplying the share price by the total number of shares.
• 🏦 The script categorizes companies into large-cap, mid-cap, and small-cap based on their market capitalization, with examples provided to illustrate the differences.

Q & A

What is the main purpose of the stock market according to the video?

The main purpose of the stock market, as described in the video, is to provide a platform for businesses to expand by raising capital from the public, who in turn become shareholders in the company.

Who is the 11-year-old boy mentioned in the video who started earning and investing at a very young age?

The 11-year-old boy mentioned in the video is Warren Buffett, who later became the world's 4th richest person with a net worth of $100 billion.

What is the significance of the story of Dhirubhai Ambani in the context of the stock market?

The story of Dhirubhai Ambani is significant as it illustrates how he went from city to city convincing people to invest in stocks, which eventually led to investors making substantial profits and the expansion of his business.

What is a Demat account and why is it necessary for investing in the stock market?

A Demat account is an account used to hold shares in electronic form. It is necessary for investing in the stock market because it allows investors to buy and sell shares online, replacing the need for physical share certificates.

How does the video explain the concept of dividends?

The video explains dividends as a part of a company's profit that is shared with its shareholders. It clarifies that the decision to give dividends depends on the company's Board of Directors and is not compulsory for any company.

What is the difference between a stock split and a bonus share according to the video?

A stock split is when a company divides its shares into smaller units to make them more affordable for common investors, while a bonus share is when a company gives additional shares to its shareholders without charging them, usually out of its profits.

Why did Wipro and Infosys split their stocks multiple times?

Wipro and Infosys split their stocks multiple times to increase the total number of shares, making them more accessible to common investors and allowing for broader ownership of the company.

How does the video explain the concept of market capitalization?

The video explains market capitalization as the product of a company's share price and the total number of shares it has issued. It indicates the size of the company and is used to classify companies as large-cap, mid-cap, or small-cap.

What is the significance of the investment story involving Wipro and Infosys mentioned in the video?

The investment story is significant as it demonstrates the potential long-term gains from investing in the stock market. It shows how an initial investment of ₹10,000 in Wipro and Infosys could have grown to hundreds of crores over time.

What is the video's stance on the relationship between a high share price and the size of a company?

The video clarifies that a high share price does not necessarily mean a company is large. The size of a company is determined by its market capitalization, which takes into account both the share price and the total number of shares.

What is the importance of the 'Telegram' group mentioned in the video?

The 'Telegram' group is important as it serves as a community where members can share and receive interesting information related to investment, enhancing their financial knowledge and awareness.