Stock Market is a place where you can earn Good money if you have Knowledge about stocks of companies.

Some Investor have very Misconcept about stock market that when stock market Goes upward they think to enter in to market and when stock market goes down then they think to exit from stock market if also they do not trade they think that investor has made a huge loss.

So People should Understand how stock market work ,What is stock market ,what is stock.

First we have to understand How it works?

Suppose there is a company ABC. Ltd Company.

It running its company from its own funding and from Director's funding,when they think to expand there Business They need more money .

Now the question is from which source they can collect Money.

First they go to Bank for Loan,then they collect money from Joint Venture,Mutual fund etc Then They go to Public directly to collect money for the expansion of there Business.

To collect money from Public they Have to get certified from SEBI. (Security & Exchange Board Of India).

As per there company Networth and company Portfolio and Goodwill SEBI will allow them to collect some money from public directly.

This is called IPO ( Initial Public Offer).

IPO means company Gives some share of its own company to the direct Investor and they are also become part of the company,

They have to get profit if company perform well or also they have to bear the loss if company underperform and make loss in business.

After getting IPO it get listed in stock Exchange and then people start trading with those stocks and making profit.