"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Warren Buffett
"I used to go to Vegas and play the horses, and then I realised how ridiculous that was. There is no winning in gambling, but there is on the stock market. " Josh Brolin
Above given quotes are some true facts about equity stock market. Equity markets is one of the most efficient financial assets in the world. If one really wants to create wealth in a long term, he should invest in stock market. One of the biggest examples of creating wealth in stock market is MR. WARREN BUFFET. He is the 2nd richest man in the world who has created his wealth only through stock market.
In India there are two major exchanges which deals in stock/securities markets, which are NATIONAL STOCK EXCHANGE (NSE) & BOMBAY STOCK EXCHANGE(BSE). And 2 major INDEXES are NIFTY 50 of NSE and SENSEX of BSE. There are more than 5000 stocks listed in these exchange. NSE was established in 1992 as the first demutualized electronic exchange in the country. BSE was established in 1875 . Over the past 140 years, BSE has facilitated the growth of the Indian corporate sector by providing it an efficient capital-raising platform. The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. It was established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992 .
There are various ways to invest in stock markets :
- Buy individual stocks of the listed company.
- Invest through equity mutual funds
- Invest through SEBI registered PORTFOLIO MANAGEMENT SERVICE(PMS)
- Invest through INITIAL PUBLIC OFFERING(IPO’S)