What is Share market, how people make money from it?

Share Market

Share market, This word may familiar to you. you may heard from people or seen in your finance book. But if  want to know the meaning, then you are at right place.

When people got pay check they think about saving ,and  then interest rate.

share market is not so complicated as rocket science, its a simple banking concept.

you can take it is as borrowing money to company and they share profit as well as loss.

Why it is called Market ?

market refer to the place where buyer and seller meet.

In share market one will sell Share and other will buy at given price.

What is share then ?

word share itself means sharing of something, 

when we divide apart company's capital then each unit is called share.

like partnership business of your neighbor uncle.

  

when big companies raise capital for their projects or expansion. they invite public by notice called prospectus, they will publish required information.

How people make money from investing in share market ?

Since your time is valuable lets get direct to secondary market (Share market)

there is two main ways to make money.

1. Dividend : From  the profit of companies they will give certain percentage to its shareholders.
2. Capital appreciation: When the value of share in market rise then sell it at profit.