You have asked 3 questions in one, I will try to answer each one by one. What is share market. A share market, also known as Stock Market, is a place where companies come to raise investments for their upcoming expansion plans. In exchange for this investment, they promise a "share in the profit", hence the name share market. Investors are called "stock holders". If its anew company coming into stock markets, then it will open its IPO (Initial Public Offer). This is the first time a company is asking investment from stock markets. A price range will be set by exchange, people like you and me, also larger investors will apply for stocks of this company, at a certain price between the basic set price range. Suppose the basic range was 300-350, then you can choose any price inside that range while applying for stocks in IPO. IPO applications will close in 4-5 days, and then actual allotment will happen. Once this process is complete, then the company gets listed in stock markets. Now its open for trading. Please remember, all the money you paid, went to the company directly, which they can use for their expansion plans. Now regular trading is happening in stock markets. Here you and I can trade "amongst us" and buy or sell stocks from each other. Company does not gets any share from the money you and I use. If I buy from you, then its you who will get all the paid amount. If I sell, then I get all the paid amount. Not the company. This is the basic of stock market. A detailed explanation can be found here: https://munafasutra.com/post/HowDoesTheStockMarketWorkForBeginners Your second question, what is Sensex. Sensex is a group of 30 hand picked companies of Bombay Stock Exchange (BSE). This is basically used as a market indicator for BSE. If SENSEX is moving up, it means that more people are buying, and market is performing good. Likewise, if Sensex is moving down, then it means that people are bearish in the market. Your third question, What is Nifty. Nifty is the market index of National stock exchange India, Nifty is short for NSE Fifty. As the name suggests, its a group of 50 companies which trade on NSE. It was originally developed as an indicator to track performance of Indian markets. If Nifty is moving up, it means that market is bullish, but if Nifty is moving down, then it means that overall trend in market is bearish. From time to time, NSE reviews the companies listed in Nifty, and removes companies which have not been able to maintain their market capitalization. For example, Suzlon and RCOM were in Nifty in 2010. They both used to trade somewhere near 400-500 rupees each back then. However, when they started performing poorly, they got removed from Nifty, and today Suzlon is trading near 5 rupees, while RCOM has already declared bankrupcy. I mentioned this to show you that it does not means "safe stock" simply because the stock is listed in Nifty today. Nifty itself can be traded in multiple ways. 1. Futures segment of NSE. Here you can buy or sell Nifty future LOTS. Please note that price of Nifty Futures is different from Nifty Spot. 2. Options segment of NSE Here you can buy or sell Nifty CE and PE LOTS. Ce is Call options, PE is Put options. If you are checking price of Nifty on NSE homepage, then that price is the same price used to determine price of various Calls and Puts of Nifty. This price is also called Nifty spot price. Prices of various CE and PE can be checked below, on a daily basis: https://MunafaSutra.com/nse/optionAnalysis/NIFTY This is also called option chain. 3. Mutual funds Mutual funds is another way of investing in Nifty companies. There are various "exclusive Nifty funds". These mutual funds only invest in companies which are listed under Nifty. You can invest in these mutual funds, and their managers will then distribute your money in different Nifty listed companies. On a very long term basis, this is comparitively safer, however, there is no guarantee of safety. If market crashes, then these mutual funds too will start giving negative returns. Like it happened in 2008. Nifty fell by 50% during the global recession of 2008, came down below 5000, if I remember correctly. However, if someone would have kept their patience, and would have held their position, then today Nifty is again trading near 12,000.

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