What Is the Purpose of a Stock Exchange? A stock exchange brings companies and investors together. A stock exchange helps companies raise capital or money by issuing equity shares to be sold to investors.

Investing in stocks is something that everyone is advised to do from their very early earning. This is because investing and trading in share market gives you an opportunity to grow your money exponentially and also check out the ongoing current shares of top-notch companies. The key is: if you buy a shares of a stable company and hold them for a considerable period of time, you can make really good fortune.

How to make money from stock market:

• Giving time: You always have the option of holding your shares or trading them daily. But the stats suggest that if you hold your investment for a longer haul its value will increase; thus making sure that you are benefitted in the long run. Short-term trading lacks the tax benefits you can get from holding onto your investments for longer. If you sell a stock before owning it for a full year, you’ll pay a higher tax rate than you would on long-term capital gains, i.e., stocks you’ve held for more than a year.

• Making it a habit: Continue investing and trading regularly. Make sure you remain disciplined, don’t try to time the market but yes, you can definitely predict the stocks once you are devoted in the system.

• Always maintain a diverse portfolio: No one knew since very early how we can be benefitted from stock exchanges because it is a gamble. All the investments are risky at some point of time, that’s why you cannot be dependent on just one security/ asset/equities. If you diversify your portfolio, you’ll be safeguarded against losing all of your assets when investments don’t go as planned. Also, you can predict market highs and lows and invest accordingly.

Why choose share market and stock exchange?

• Inflation which is a really significant phenomenon can be countered through investing in share market and stocks. Whenever inflation occurs in the economy it consumes our purchasing power. The returns from bank, FDs and other institutions can hardly counter the rising inflation because their returns become low.

But this doesn’t happen with share market. The returns from share markets are comparatively higher, thus, you can invest in something and be safe for a long haul, thus to counter inflation.

• The share market also gives an option of diversification. Means you can invest in various different types of assets like debt securities, common stock, preference shares, large-cap stocks mid-cap stocks and small-cap stocks among others so that you may diversify your risk. In this case, if one thing does down the other can cover it up.

So, for making a “good fortune” from share market and stock exchanges all you need is a little bit discipline, and research before investing or trading. Also, a lot of patience is required because you may decide to keep your investments for a slightly longer time to give you better returns

Keeping in mind the higher returns and an ability to beat inflation, share market investments can prove to be a smart decision.

Also, you may note various people who became really rich and successful traders and investors just by keeping an eye on the “market” and being patient. If you are thinking of multiplying your wealth then it is a good option for you. One all time famous example is of Warren Buffet. Indians who exceed in this field are Rakesh Jhunjhunwala, Radhakrishnan Damani, Ramesh Damani, Ashu Shehrawat, etc.