Businessman’s Perspective to Stock market:

To join a stock market is not easy fro a company because these exchange has rules and regulations.It can take years to meet these requirements,For example the firms that are listed on BSE are the firms with billions of turnover and some of the biggest corporations in India -bluechip companies like Reliance,Infosys,Wipro Bharti Airtel etc.

A corporation cant issue shares till its private ltd ,once it goes public (actually this process is called IPO (Initail Public Offering) it allowed to trade its shares on stock market.

Every firm try to convince investors to invest in their stocks,parallely they also take care of existing share holder.To convince bid investors corporations have to show their performance or how their firm is doing.Hence they publish its annual report etc.

You will later understand how a hoax cause market to fall a deep.

Types of Investors:

1] Individual Investors:

Warren Buffet is the magical person who could bring Bill Gates from his position in wealthiest person list how ? surely by stock market.He is one of the most profitable investor of his time.Today he is owner of a firm with share price of $70,000 per share,Hathway Yorkshire.He became billionair using buy and hold strategy.

2] Traders:

these are investors who don’t care about long term perspective.They use market for their bread and butter hence they sell stocks at every profitable moment.They only focus on price of shres.We call them Share Brokers.

3] Trading Professionals:

these pro people invest in market on behalf of their client.They take money from client and invest in market,make money.They work in brokerage and stock exchanges.

 

Stocks and Shares in conceptual way…

The only thing i knew about stock market was its dangerous, and we loose money in Stock market.You may be agree with me but not after reading this blog.

In this blog i’ll tell you what is share, how to invest in it and earn from it.Without that you hardly had a chance to win against the pros who do business i market.Because stock market is a brutal game you must have the shield of knowledge to protect your money and of course enough courage to participate in the game.

Stock Market: (or Equity Market):its a private or public market for trading of shares of companies and its derivatives.This is purely technical definition so to make it clear let’s take an example,

A firm ,say ACE, is a business man and he want to grow his business or hire more employees or want to buy latest equipments for more efficiency, all he need is capital or money.So the firm issues the shares of stock in the firm.People like you and me, buy the the shares and raise capital for John.The place where we all meet,buy and sell is called Stock Market. 

The only thing i knew about stock market was its dangerous, and we loose money in Stock market.You may be agree with me but not after reading this blog.

In this blog i’ll tell you what is share, how to invest in it and earn from it.Without that you hardly had a chance to win against the pros who do business i market.Because stock market is a brutal game you must have the shield of knowledge to protect your money and of course enough courage to participate in the game.

Stock Market: (or Equity Market)

its a private or public market for trading of shares of companies and its derivatives.This is purely technical definition so to make it clear let’s take an example,

A firm ,say ACE, is a business man and he want to grow his business or hire more employees or want to buy latest equipments for more efficiency, all he need is capital or money.So the firm issues the shares of stock in the firm.People like you and me, buy the the shares and raise capital for John.The place where we all meet,buy and sell is called Stock Market.

In india BSE(Bombay Stock Exchange),NSE(National Stock Exchange),NIFTY and in U.S NASDAQ,NYSE are some of the prominent exchange .Stock may referred as equities or securities hence Equity Market.

Now you have bought the shares of ACE firm so you are sharing in the sucess of business.Actually you become a part owner of firms.This applys to bad times of corporation as well ,means if company is in loss you are in loss.

Now the question is how we can make from Stocks?

Suppose a corporation is doing well,obiviously its share prices will go up or rise ,now you sel the shares and earn lots of extra bucks.If the corporation do badly you will loose your principle amount also.(when you sell it ).

Now you might have lots of question like, from where to buy shares? What is SENSEX (particurely for india) or stock index? Is share income taxable?

Just hold on and keep reading…

Where to buy?

Shares can be bought directly at stock exchange or from stock broker.Certainly broker will charge a fee for its service and advice.When you buy shares of a firms you get a Stock Certificate as proof of ownership.Keep in mind you are investing in companies not in Stocks.The profits you make from a stock are called ‘Capital gains’ .It’s difference between what you paid for a stock and what you