Why is stock market necessary, what is its functioning, how does it work?

Let us try to know something about the need to enter the stock market. Before the stock market came into the market, there were some old practices for investment such as buying land, buying gold and keeping fixed deposits. These would yield 5%-7% profit every year. Apart from these three main investments, there are also Mutual Funds, but without your knowledge, you can invest money in M.F and S.M. Invest this money. The reason is that the money you are investing as M.F, is being invested by a third person, S.M.-A. This means that you are giving money to a third person to buy from the stock market. Mutual Funds generate more income than the stock market. We will try to understand how this happens. Generally M.F. From 10-15%. There is profit but if you S.M. If you understand the relationship well then you can easily earn 40%-70% income in a year. For that you will have to connect directly with S.M. However, you will get more returns from your investment. This is the reason why you can join the stock market instead of that old practice. There are other names of stock market like – share market, security market, one thing common among them is market, what we understand by market is the exchange of any property. It is also called as – fish market, there are different types of fish, where people come and buy different types of fish. What kind of fish to buy? Similarly, there is a stock market and a market where various types of shares, bonds and derivatives are traded. This means there is buying and selling of all this. In short, if the stock market is to be analyzed, it means share trading. Which is operated by a platform where the price of a share keeps moving. If the sellers like it then they sell it, usually like an auction. An important thing among this is that the share price is completely dependent on the demand and supply. Basically, buying and selling of shares goes on among each other through the stock market.

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