What is Share Market? #StockMarket Explained in Hindi from Beginners | How to Make Money?

Summary

In this video, the speaker shares their curiosity about exploring the share market, which they initially viewed with skepticism due to family experiences. Having gained financial freedom through businesses, they delve into understanding shares and stock trading, comparing it to gambling. They explain the difference between investing in strong companies for long-term growth versus short-term trading. The video aims to simplify the share market, showing that investing with knowledge is not gambling, and encourages viewers to open a Demat account for future trading and investment learning.

Takeaways

• 😀 The speaker is financially free and motivated by curiosity to explore fields that are often considered difficult or taboo, such as the share market.
• 😀 The speaker has had diverse business experiences, including in marketing, sales, and network marketing, and is now focused on expanding their knowledge.
• 😀 The speaker’s parents have always discouraged involvement in the share market, associating it with gambling due to past personal losses.
• 😀 The speaker reflects on how the share market has often been misunderstood by society and family, with a strong focus on breaking those taboos through education.
• 😀 The speaker introduces the concept of shares as ownership in a company, clarifying the difference between a director (a servant) and a shareholder (the owner).
• 😀 There is an emphasis on the importance of understanding company fundamentals, such as private and public limited companies, before considering investments.
• 😀 When a company becomes public, it lists shares on the stock exchange (like BSE or NSE), where shares are exchanged for capital, allowing businesses to grow.
• 😀 The speaker distinguishes between investing in shares as a business and trading in shares, which can sometimes resemble gambling if done without knowledge.
• 😀 Long-term investments in fundamentally strong companies are portrayed as the safest way to participate in the share market and grow wealth.
• 😀 The difference between gambling and trading is explained, with knowledge as the key differentiator. If you know trends and use technical analysis, it's trading, not gambling.
• 😀 The speaker encourages viewers to open a Demat account, emphasizing that it is crucial for making investments and learning more about stock analysis in future videos.

Q & A

What is the speaker's current state of life, and how has it shaped their curiosity?

The speaker is financially free and no longer needs to work for money. This freedom has sparked a curiosity to explore fields that are perceived as difficult but can be simplified for others, as part of their mission to help others become self-made.

What is the speaker's background in business, and how does it relate to their current exploration of the share market?

The speaker has a strong background in marketing, sales, and running various businesses, including opening an institute. This experience has provided them with practical knowledge, but now they are curious about exploring new dimensions, such as the share market.

How did the speaker's parents react to their interest in the share market?

The speaker’s parents were strongly opposed to their involvement in the share market, considering it to be gambling. The speaker's father had previously experienced a significant loss in the commodities market, which led him to advise the speaker against it.

How does the speaker differentiate between gambling and trading or investing in the share market?

The speaker clarifies that trading or investing in the share market is not gambling if approached with knowledge. Gambling involves randomness and uncertainty, while trading and investing, especially with technical and fundamental analysis, are based on informed decisions.

What is the fundamental difference between business ownership and being a director of a company?

The speaker emphasizes that the true owner of a company is the shareholder, not the director. Shareholders own the business because they hold the company's shares, while directors are employees who manage the company's operations.

What does it mean to have a public limited company, and how does it relate to raising capital?

A public limited company allows the public to invest by purchasing shares. This enables the company to raise capital from the public, unlike a private limited company, where shares cannot be sold to outsiders. A public limited company is listed on stock exchanges, allowing for easier access to funding.

What role do stock exchanges play in the share market?

Stock exchanges, such as BSE and NSE in India, act as platforms where companies list their shares. These exchanges facilitate the buying and selling of shares, allowing companies to raise funds and enabling investors to trade these shares based on market demand and supply.

How does the speaker explain the concept of share pricing in the stock market?

The speaker explains that share prices are determined by demand and supply in the market. While a company may issue shares at a certain price, the market value may fluctuate based on what investors are willing to pay. This is driven by factors such as the company's performance and investor perceptions.

Why does the speaker consider shares to be a better investment compared to assets like gold or property?

The speaker believes shares represent ownership in a business, which has the potential to grow and generate profit. In contrast, assets like gold or property are more static investments that do not generate returns as quickly. Over time, shares in fundamentally strong companies tend to offer higher returns.

What does the speaker recommend for those interested in the share market?

The speaker recommends focusing on investing in fundamentally strong companies for the long term, rather than engaging in short-term trading. They advise opening a Demat account for ease of trading and investing and suggest using tools like technical and fundamental analysis to guide investment decisions.