The Things We Should Know Before Investing In Stock Market

To My Friends,

To survive, we have to work extremely hard in order to earn money. 

And since someone else made a lot of money from the stock market very quickly that attract us also and So with a lot of confusions, we decide to invest our hard-earned money in stock market, in an attempt to increase our own earnings. 

Without knowing - What should I purchase? When should I buy? Why should I buy? and then we experience losses in stock market. 

No one think on it, why it happened so?

Have you ever thought what is the reason behind these losses? 

The answer is pretty clear that the reason is "lack of stock market literacy"

People want to reach some destination but they really don't know the road to destination.

Have you ever considered the things that we must to know before making investments in stock market?

If "YES", that's fine; if "NO", please read the questionnaire below, take note of these questions, and try to answer them.

Below is the questionnaire:

1. What is stock?

2. What is stock market?

3 .What is stock trading?

4. Why stock trading required?

5. How companies get lists into stock market?

6. What is the name of Indian stock market?

7. What is the index? Nifty & Sensex

8. Where is Nifty and Sensex situated?

9. How Nifty moves up and down?

10. What is the Market Capitalization?

11. What is the Large Cap, Mid Cap & Small Cap means?

12. What is difference between Trading & Investment?

13. What are the types of Trading?

14. What are the types of Investment?

15. What is the Fundamental & Technical analysis?

16. What is the use of Fundamental analysis?

17.  What is the use of Technical analysis?

18. What is P.E?

19. What is Book Value?

20. What is Dividend / Share?

21. What is Dividend yield?

22. What is Face value?

23. What is ROCE?

24. What is ROE?

25. What is EPS?

26. What is Price to book value?

27. What is Reserve?

28. What is Surplus?

29. What is Equity Capital?

30. What is EBITDA?

31. What is Debt?

32. What is Zero Debt?

33. What is OPM?

34. What is PAT?

35. What is Net Profit?

36. What is Interest & Borrowing?

37. What is Interest Coverage ratio?

38. What is Balance Sheet?

39. What is Profit Loss statement?

40. What is Cash Flow Statement?

41. What is Standalone & Consolidated result?

42. What is the Quarterly result period Q1, Q2, Q3 & Q4?

43. What is Bullish trend and Bearish trend?

44. Who is DII?

45. Who is FII?

46. Who is Promoter?

47. What is Share Holding?

48. What is Sectors?

49. How many sectors are there in Indian stock market?

50. What is mean by market trend?

51. What is Dow, Nasdaq, CAC, DAC, FTSE, Nikkei, Hang Seng, Shanghai Composite?

52. What is the importance of world stock market timing?

53. Which country market opens at what time?

54. Which is the costliest share in the world market?

55. When Nifty & Sensex started?

Honestly try to get answers for all the above questions. 

This are very basic information, one should know all these things before making investment in stock market. 

I hope this article will help you to improve your stock market knowledge for better investment decisions.

Disclaimer: This post is not considered a recommendation to buy, sell, or invest in any company; it is just intended for educational purposes. Do your own research and due diligence before making any investment decision, and talk to your financial advisor.