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 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.
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
Tags: demat, equity, mutual funds, share, stocks
