A company can get funds in diffrent ways Share Market is one of the way.When a company is performing well and they need some funds for some big expansion they can go for selling their stocks.It is much better than getting loan frm the bank.But to enter a stock market the company has to satisfy certain norms of Securities and exchange board of India.
I suggest you to enter into share market business, if you have extra money with you, other than the money that you have to lead a peaceful life.
First of all, get the knowledge from the people who are doing share market business but don't depend on them. If possible, take training from someone. Goto stock broking companies, and observe the transactions going on... Learn for atleast 2 months. Then, if you feel confident enough, proceed further.
You need to have an account called DEMAT Account. For this, you need to submit your PAN card and some money. Then, you will be eligible to do this business upon your safe deposit.
First of all, get the knowledge from the people who are doing share market business but don't depend on them. If possible, take training from someone. Goto stock broking companies, and observe the transactions going on... Learn for atleast 2 months. Then, if you feel confident enough, proceed further.
You need to have an account called DEMAT Account. For this, you need to submit your PAN card and some money. Then, you will be eligible to do this business upon your safe deposit.
A breif description about Stock Market:
History :
- Privately owned corporations came into being gradually during the early 19th century in the United States , United Kingdom and western Europe as the governments of those countries started allowing anyone to create corporations.
- In order for a corporation to do business, it needs to get money from somewhere. Typically, one or more people contribute an initial investment to get the company off the ground. These entrepreneurs may commit some of their own money, but if they don't have enough, they will need to persuade other people, such as venture capital investors or banks, to invest in their business.
- They can do this in two ways: by issuing bonds, which are basically a way of selling debt (or taking out a loan, depending on your perspective), or by issuing stock, that is, shares in the ownership of the company.
- Long ago stock owners realized that it would be convenient if there were a central place they could go to trade stock with one another, and the public stock exchange was born. Eventually, today's stock markets grew out of these public places.
- In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market.
- By owning a share you can earn a portion and selling shares you get capital gain. So, your return is the dividend plus the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price.
Quick Facts on Stocks and Shares
- Owning a stock or a share means you are a partial owner of the company, and you get voting rights in certain company issues
- Over the long run, stocks have historically averaged about 10% annual returns However, stocks offer no
guarantee of any returns and can lose value, even in the long run - Investments in stocks can generate returns through dividends, even if the price
How does one trade in shares ?
Every transaction in the stock exchange is carried out through licensed members called brokers.
To trade in shares, you have to approach a broker However, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders.
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