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Sectors in Stock Market Companies can be divided into 12 major sectors. These sectors are: → Consumer Discretionary → Communication Services → Consumer Staples → Energy → Financial → Health Care → Industrial → Information Technology → Materials → Real Estate → Utilities (1) Consumer Discretionary Consumer Discretionary sector covers businesses that do businesses in Auto(it includes from manufactures to sellers), Retail(footwear, apparel, etc.), Textiles(from manufactures to sellers), Educational Services, Hospitality(Restaurants, hotels, cafes, etc.), Travel, Jewelry, etc. Top companies in this sector on the basis of market capitalization are Maruti Suzuki, Titan Company, Avenue Supermarkets, Bajaj Auto, Hero MotorCorp, Motherson Sumi Systems, Jubilant Foodworks, Voltas, MRF, Page Industries, Bata India, etc. This sector includes products with the cost of Rs. 10 chocolate to lakhs or crores of rupees of car. This section includes products that are essential and even non-essential o...

Basics of Share Market What is the share market? First of all, what is a share? A share is equity ownership in any company, so to simplify this let us understand it with an example if you own a 100% stake in a company worth Rs. 10,000, you are in need of some money so you decide to sell your 25% stake in the company worth Rs. 2500, here you have two options that you can sell your stake to huge net worth or institutional investors or you can sell it in public, so if you opt to sell it in public you need to divide it into small parts called shares so if you keep the price as Rs. 100 per share so means that by buying one share the investor becomes an owner of 1% in the company, in reality, the ownership of one share is very low. Didn't got it that what is a share? Just read it again you will get it.  Note: Share market is also called the stock market, so don't get confused when someone says stock market. A share market is a place where the trading and listing of shares takes place...

What is an ETF(Exchange Traded Fund)? After the popularity of mutual funds in the last two decades here came an interesting investing object ETFs. ETFs make an investment in stocks of a particular index in the same weightage as of index which it follows. In an easy way, ETFs can be said as mutual funds that can be traded like stocks. ETFs can be traded at exchanges and the price depends on the buy and sells of units. Eg. Nifty ETF. How does ETFs work? Firstly the AMC buys the stocks with the same weightage as of index which the ETF will be following. Then these shares are divided into small units so that they can be distributed among the investors. And finally, these shares are then allotted to the investors. In case of more demand, the AMC can issue more shares and in case of low demand, the people can sell their shares back to the AMC. And after the allocation is done the AMC(Asset Management Company) which sponsors the ETF will list  Read More: What is Nifty 50 and Sensex? How i...