FAQ

  • The stock market is a platform where investors buy and sell shares of publicly traded companies. It’s a crucial part of the global economy, allowing businesses to raise capital and investors to grow wealth through ownership of company stocks.

  • To start investing, you need to open a brokerage account, fund it, and research stocks that fit your investment goals. Beginners should focus on understanding stock basics, risk management, and gradually build their portfolio.

  • Stocks represent ownership in a company, while bonds are loans made by investors to corporations or governments. Stocks generally offer higher potential returns but come with more risk, while bonds are considered safer but provide lower returns.

  • A stock market index is a collection of stocks that represent a segment of the market, such as the S&P 500, which tracks 500 large U.S. companies. Indices are used to gauge market performance and guide investors' decisions.

  • Dividends are payments made by a company to its shareholders, typically from its profits. Not all companies offer dividends, but those that do generally provide them as a reward for holding the stock.

  • A bull market refers to a period where stock prices are rising, while a bear market is when stock prices are falling. Bull markets are associated with investor confidence and growth, while bear markets suggest economic downturns or pessimism.

  • Managing risk involves diversifying your portfolio, setting stop-loss orders, avoiding emotional trading, and only investing money you can afford to lose. Risk management is key to long-term success in the stock market.

  • Trading involves buying and selling stocks for short-term profits, often within a day or weeks. Investing is focused on long-term growth, holding stocks for months or years. Both require different strategies and risk tolerance.

  • You can start investing with as little as ₹500 or even less with fractional shares. However, the amount depends on your goals and the stocks or assets you wish to invest in.

  • While it’s possible to lose money in the stock market, especially in high-risk trades, careful investing, diversification, and risk management techniques can help minimise losses.