Since the year 2019 life has become very unpredictable. The year-end of 2019 was a shocker for the world and we found ourselves in the midst of a pandemic. Life and earning a living have become very difficult ever since.
People want to stay at a safe distance even while at work. So, it has become necessary that our savings should not be left idle and even they should be earning a premium by staying invested in a well-thought investment. Stock market investment has come as an important and lucrative mode of investment among people. However, this instrument before indulgence needs prior knowledge and awareness. Share Market Profile is one of the best institutes which provides online share market training in Chennai.
Knowledge of Capital Market
A capital market is a place where all kinds of financial instruments are traded where buyers and sellers come under one roof to trade, buy or sell the instrument of their choice. It can be shares, bonds, debt instruments, currencies, etc. By investing in equity small investors become shareholders of large companies and earn a part of the profit as a dividend when declared. Organizations require large amounts of loans from the market as working capital or purchase of equipment, or for running of the company on a day-to-day basis, etc. These loans are also raised in the form of debt or bonds from the capital market which are given back at a fixed rate of interest to the investors.
It is in the primary market where new shares of companies and debt instruments are floated for the first time between the investors for investment. Initially, when the shares are floated for investment, it is called an IPO offer. An IPO offer is offered by a private company for the public to invest in their shares.
A secondary market is a place where the stocks are traded i.e., bought and sold between traders. BSE and NSE are part of the secondary market in India. The traders trade the shares among themselves without the company being a party to the transaction. Similarly, bonds issued by a company can also get traded in the secondary market as they have a lock-in period and an investor might want to trade it for liquidity or there are many old bonds bought and sold in the secondary market as the interest rate for older bonds is much higher. The basic understanding of the different kinds of investments and the kinds of markets is well explained during the training provided by Share market profile as they provide one of the best share market trainings in Chennai.
An economic analysis is divided into two divisions
- Macroeconomics deals with the decisions taken by a country or at a national level which affects the overall flow of money market the buying and the selling of goods and services which affects the businesses and industry sectors’ performance. It broadly deals with the gross domestic product of the country, the prevailing inflation rate, the unemployment rate, government debt, the prevailing interest rate in banks, and other financial instruments.
- Microeconomics on the other hand deals with the economics of individuals and their businesses. It makes an overall study of the household choices of spending and saving which is influenced by the macroeconomic policies of the country. It is basically the study of the economics of the common man. The factors which govern his likes and preferences’ buying and selling of shares and bonds can also be studied in it.
Technical Analysis of Stocks
Analysis of stocks needs to be done for investment by the investors. The historical data of companies is studied in detail which entails the financial analysis of the balance sheet and profit and loss account, the
cash flow, the debt-equity ratio of the shares to be purchased by the investor. The investor also studies the performance of the competitor companies to ascertain that the company is in a state of good financial health and any economic or financial turbulence will not affect the functioning of the organization and the investors’ money is in safe hands.
During the analysis, the companies’ peak share prices and steep fall of prices are noted for a particular period of time. While charting these graphs for a time frame an investor can understand the performance and the turbulent behavior of the share in the stock market. Similarly, the performance of an industry can also be established through the process of analysis of shares of an industry in a time frame. This analysis gives a new investor the confidence to invest in the right sector and the right share at the right time. Share market profile is the right place to start as a learner and hone up one’s skill set as an investor. To get the best share market training in Chennai click the link www.sharemarketprofile.com