Hello everyone it’s Shine Gyan where knowledge and idea can be begins without End. Today we’ll be talking about the current trending topic “Share market”. Most people said “share market” is the place or platform where a person can earn money in a short period of the term. Yes, I can say it is absolutely true.
If you have good knowledge about the Share market you can earn money in a short period of time. I’ll be sharing the knowledge with you about the “Share market”. This is an interesting topic. In my opinion, if you’re holding citizenship a person must know the share market. At an early age, investing money can make future life convenient and easy. I request if you’re a student, employee, or science background, management, arts, even uneducated but you have citizenship. read this blog which helps your life convenient and easy. when you take the knowledge from the ground root, it will be easy for you.
What is Share?
Maybe most of the people known about Share. Maybe you heard that some person saying you’re some percentage of a partner in this company. Those percentages are also known as ownership of the company. Simply we can say Share is an Ownership of the Company.
What is Share Market?
The market where the Share or Ownership can be Sell and buy is called Share Market. Suppose, you have a certain percentage of share and you can sell it out. Share Market is the place where you can sell side by side, if you want to be a shareholder or buy the Share of the companies, Share Market is the place where you can buy. Buying and Selling of Share on Market are known as Share Market. Private companies are not listed on the Share market because Private companies are made up of different companies in a closed circle. Only Public Companies can be traded in the Share market known as public limited companies. Public shares are in huge amounts. it can be sell or buy on Share Market. So, only public limited compies are listed on the share market. The place where the shares or ownership buy or sold is called the share market. Share Market is also known as Stock Exchange, Stock Market.
Every countries have the share market. Now what’s the importance of share market for the countries?
What is the importance of the Share market for the countries?
Source of business capital
Share Market is the source of the business capital. Suppose, a public limited company needs to expand but the companies don’t have enough balance on their saving. How they bring a huge amount of money? The only remedy is The company has to take a loan from banks. When you take the loans you have to pay with principal side-by-side interest. The difficult thing is when you try to expand your business you can’t focus on your business to expand because you have to pay the principal side by side interest. So you can’t expand your business at full capacity. Another remedy is IPO. IPO stands for “Initial Public Offering”. When you go to the public & collect the money from them, that money will not be as a loan but you have to give them ownership of your company. In the future, You have to give the bonus/dividend instead of interest to them. You’re just adding partners to your business. When your company gets profit, either you have to provide profit to them depend upon you. When your company gets the loss, nobody gonna ask you for return of money which you had collected. In this way, a company gets help to increase the huge amount of capital. At the same time, you don’t have to pay the principal and interest. In this way, you can focus on your task to take it on the potential. If you collect money from the IPO. Now, a question can arise in your mind, how does a country get to benefit from them. Simple we can say a government takes the taxes from the Stock market. On every each buying & selling of shares, the government takes the taxes which the government utilizes that money on the development of the country. In this way, a government gets a huge amount of revenue. So, the Stock market is the biggest source of the business capital of the country. So, every country has a Stock Market.
Share market promotes investment. How? Let me know you. A task of the government is to make the policies on different sectors likewise Development of Agriculture Sector, Development of Real State. Government creates the policies which relate to taxes. The majority of people invest in that sector. The government provides the facility to invest in different sectors likewise, Hydropower, agriculture, Real estate, Research & Development Sectors. Government creates the policies of making the environment of investment. In this way, the government never invests but they create the environment to invest by investors with security. Later than the company gets into profit. I mean, the company will be at its full potential. In this way, a government increases the economics. Sidebyside Stock market will be diversified. As a result, the Share market promotes investment.
Good Source of income for Government
The share market is also known as a good source of income for the government. When a public project is executed by the government. Likewise, water treatment plants, public community service projects. Only the government can’t afford to execute them. When the government wants to execute them, Government needs to increase the tax from the citizen of the country. So, The government issue public bonds. By issuing the bond they increase the capital. Maybe you had heard about Government securities, Securities bonds in the market. If you had heard this type of bond, you should be known about it that the government is collecting the funds which are pretty safe Because the government itself issuing completely safe bonds. So, the investor invests a huge amount of money on this. As a result, the government takes a huge amount of tax from the investors. Securities bonds are the bond issued by the government of the country which is secure, less risky, good for new investors on the share market. So, the Share market is the Good Source of Income for the government.
influence Economic Perception of Country
Another topic is “Influence Economic Perception of Country”. it means that a different country has a different share market/stock market. Likewise, Nepal has NEPSE, INDIA has BSC Sensex & the USA has Nasdaq. It gives the measurements to the Stock market of their country. This shows the economic growths of the country how much the Stock market is good enough for their country. With the help of this point, foreigner investor comes and invest on the good country. In this way, a country gets a huge amount of capital gain from a foreign investor. When a Stock market of the country is good enough to invest a foreign investor gets to influence and comes to invest their money. So, the Share market is very important to have a stock exchange or share market or stock market.
There are lots of advantages of share market on the country. These points which I mentioned is the most important to have the share market on the country. I hope this will be very helpful to you.