What is stock market ?
A stock market(share market) is a market where shares of listed companies are buy and sold through a stock exchange. These buying and selling done through a stockbroker. Listed companies are those which are list on a stock exchange to trade their shares.
It is not that only shares are trade in the stock market. Apart from this, bonds, mutual funds, derivative contracts are also traded in the stock market.
At present, there are two stock exchanges operating in India.
Companies listed in the share market invite the general public to buy their shares. By buying shares of any company, any person becomes the owner in proportion to his share in that company.
Why do companies issue their shares to the public?
Any company needs capital for its expansion, growth and business expansion. Instead of taking a loan, the company tries to raise the required capital by selling its shares to the public. The process through which companies issue shares for the first time called IPO (Initial Public Offer)
What is share ?
Share means “share”. Suppose the value of XYZ Company is ₹ 1 lakh. That company issues 1 lakh shares in the market at the rate of ₹ 1.00. Now suppose you bought 5,000 shares of XYZ Company. Now you have become the owner of 5% shares of that company. As the value of the company increases, the value of your shares will also increase. The poor performance of the company can also lead to a fall in the share price.
How many types of shares are there?
(i) Equity Share – Equity share holders are partners in the profit and loss of the company. In addition, the equity shareholder also has the right to vote in the company’s AGM (Annual General Meeting).
(ii) Preference Share – Preference share holders do not have any voting rights. Preference Shareholder receives a dividend income as profit.
Frequently Asked Questions
First learn then invest friends, before investing your money in anything you should know about it. …
Do research yourself, only research can make you successful in the share market. …
Learn to control your Emotions…
Diversify your investment…
Invest only up to your risk capacity
1. Growth stock
2. Value stock
3. Dividend stock
4. Bluechip stock
5. Penny stock
Trading is the process of buying and selling any goods or services, as well as analyzing its graph to make predictions on the price of a particular asset. This is mainly done with the hope of earning extra income and profit.