The stock market and investing in stock market forms the crucial stratagem as far as company is concerned. Generally the stock market forms the platform where shares of listed public companies are traded to the general public so as to raise the funds for the company. Presently the investors are keener on investing in stock markets for rendering the benefits in increased share values. Investing in stock market is more like gamblingor the zero-sum game as it refers to the concept wherein money is taken from the loser and is presented to the winner. Investment increases the overall affluence of the economy as through this companies increase productivity to make the life of the common man better.For investing in stock market there are some favorable rules that determines the potential for growth .
This involves steering the mentality of the investors which generally happens through the actions of near ones behavior of investing .The rule also ascends to beget disciplined approach in investment for long term endurance.The judgment taken for investing has to be free of emotions as in the procedure of investment. As there are instances wherein the investors tend to lose money at such times the investors prefer to sell the shares at bottom prices.
The expectations from the stock market must be realistic and must be realized that the stock market is a place where the companies’ shares are floated through IPO”s. And the securities once sold to the primary market can be traded in the secondary market and both the markets are monitored by SEBI. Also it must be highly noted that the stock can be sold or bought only if it is listed under exchanges ,either the national or the Bombay stock exchange. The rule also states that the investment must be done from the surpluses as there is always risk of losing the shares .
Through proper awareness and usage of surplus funds the impact from the bearish trend can be brought down. Continuously the stock market must be monitored as any event can affect the financial market of our country.If in case the investor lacks knowledge,then financial planner must be consulted .Moreover if the investor is not able to abide by the rules of stock market then it is recommended to get rid from investing into the stock market.