Most of the investors in India have an assumption that the terms share market and stock market are identical and possess the same meaning. A beginner would not be aware of the difference between these terms and it’s important to learn the difference if you want to earn wealth.
Here is where, Goodwill would like to guide you by providing you with the relevant information about these terms. In this blog, we will discuss what is a share market and stock market and what is the difference between them.
WHAT IS A SHARE MARKET?
The term “shares” refers to the investment strategies such as mutual funds and limited partnerships. Shares are the components of a corporation’s overall value. The share market allows the organization to receive funds by selling its shares to expand its operations. A share market is a trading platform that allows the investor to purchase a portion of firm shares.
In general, the share market relates to the ownership of a corporation’s stock because one can become a ‘shareholder’ of the firm when the shares are purchased. If the company faces losses, the shareholders are responsible for the failure.
WHAT IS A STOCK MARKET?
Stocks, equities, bonds and securities are widely traded on the stock market. The term stock refers to a corporation’s ownership certificate. The stock exchange regulates the trading platform in a regulated manner that connects stock sellers and buyers. In India, there are two main stock exchanges namely “Bombay Stock Exchange (BSE)” and “National Stock Exchange (NSE)” which are controlled by the Securities and Board Exchange of India (SEBI). The stock market guarantees you financial transparency and equal rates.
If a stock isn’t listed on the stock exchange, an investor cannot buy or sell the stocks as the stockholders trade bonds, commodities and stocks listed in the stock exchange. The stock market keeps control of the stock demand and availability and controls its value effectively.
COMPARING STOCK MARKET & SHARE MARKET:
Both the share market and stock market are centered on the same concept called trading. Although these terms sound identical to each other, their modes of operation are distinct. A stock market is a market where different types of stocks and shares are exchanged. The price of certain shares are determined by concerning its supply and demand factor.
A corporation is allowed to issue its shares individually, which cannot be performed with stocks. Stocks are created by combining many shares. Remember, stocks possess a significant value while shares have a low value when compared to stocks. Hence these are the main differences between a share market and stock market, however, a stock market can also be termed as a share market as both are related to each other.
START EARNING FROM YOUR INVESTMENTS:
Invest your valuable savings in the stock market or share market to gain more profits from your investment. Analyze your financial requirements and either choose to invest in stocks or shares for successful trading. However, investing in the stocks would require expert guidance, hence seek the assistance of experts like Goodwill.
If you’re a beginner in the stock market, then Goodwill would always be the right choice. Goodwill offers you live training sessions and demo trading platforms to improve your trading skills in the stock market. Open your free DEMAT account with Goodwill today and enhance your trading experience. Click here to open your free DEMAT account now!
For more info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly and efficiently. Stay connected with Goodwill’s Facebook Page and get instant live updates on your stocks.