What is Stock Market & What is Shares???????
Hi iam an engineering student doing the engeering in IT. Recently i got little bit interest to know about the share market . I don't know anything about it. Pls explain me about how to purchase the shares of a company,how a share company works????? What is a public issue? For e.g. a company 'X' opens the public issue then what does it mean??? & at price of Rs. say 10 then what is this????? How & where to go to purchase the shares????etc. etc.. Pls explain me evrything in detail....... Thank You
A share market is a place like any other market. In a vegetable market people buy and sell vegetables. In the share market, you can buy and sell companies. Advantage here is that these companies that you buy become your investments. you become a part owner in the company in which you buy shares off.Its a place where one can chose and pick the companies one wants to own. A very simple way of investing in companies that mostly form the economic back bone.You will have the choice of owning companies that produce or service the very basic needs of a human beings livelihood.All the products that we consume in our daily life are manufactured or serviced by companies and those companies area available for you to chose and own them.You can be a part owner of the company that manufactures the car you use.The clothing you wear.The food you consume etc., so if you have a liking for say Maggi, and you consume it often. You also see many people around you have a similar liking. You know for sure that the business of Maggi is very hot, and there is good profit in that business. Nestle is the owner of this brand and this company is available in our stock markets for you to own.Similarly every product or service that we use in our day to day life are given by some company and all those companies are available in the share market for the people of this country to own a part in them.A stock exchange is the organisation or an institution which facilitates this transaction to happen, with regulations and norms to protect the people in a share transaction. In more simple terms, a Stock Exchanges facilitates the transaction.
Stock Market what is it help?
The techniques and strategies as well as a few stock market trading tips will truly help you on how you can venture into stock trading with higher chances of making profits from it. If you are looking at stock trading as an option in investing your money, here are a few stock market trading tips that you might want to know to learn if you can indeed make good profits in this risky but lucrative venture. - Learn everything you can about the stock market, stock trading as well as the risks involved in the trading of stocks. With a good knowledge on these basics you will learn how to manage risks and minimize losses once you are trading. - Assess your strengths and weaknesses. Successful traders often have discipline to stick to their trading strategy. Also assess your control over your emotions. Curb down your greed. Have the appetite for risks. Fear and worry can eat up your chances of making more money on stock trading as well.
Let’s look at what are Shares, Equities and Stocks?Shares & Equities:Share are units of equal value of the total capital of a specific company.Equities also mean the same - that each unit has equal value.Example: If company is worth 100 and has issued 100 shares then each share is of value 1.This is term is used when you want to specify exactly what you bought/sold.English meaning: Just like the English language word ‘share’ the finance word means the owner of a share ‘owns a percentage (or share) of the company’.Stock:A bunch of shares grouped together is called Stock.Example : An investor who has invested in both deposits and shares of various companies would simply say that he - ‘owns both deposits and stock’.This is term is used when you want to specify shares in multiple companies or different types of shares.English meaning : Just like the English language usage of the word ‘stock’, you can use this word to mean ‘the inventory of various types of shares’.The Stock market is a place where shares of different companies are traded.The Share market means the same as Stock market. However, this is not proper and one must try to use Stock market instead of Share market wherever possible.Hawala has no connection to stocks. This is a mechanism to transfer money across international borders in an attempt to (a) avoid taxes or (b) avoid authorities. Typically money is paid to an agent in source country who then instructs his associate in the destination country to pay the final recipient. Hawala is typically used to fund terrorism and to hide black money (tax evasion) abroad.Hope this answers your questions.- Prashanth, Founder, Spotalpha.com - Algorithms that maximize your profits and minimize your risk
A share market or stock market is a market that deals with buying or selling of any kind of securities. Both share and stock are the same in some ways. Although, the difference comes from the context in which stocks and shares are used. A stock is basically a general term that is used to describe the ownership certificates of any company, on the other hand, shares refer to the ownership certificate of a particular company.In simple terms, a share is the smallest unit that represents the ownership of the shareholder in the company, whereas stock is defined as the collection of shares of a member of a company in lump sum. And when shares are transformed into stock, then the shareholder becomes a stockholder, who possess the same right as that of the shareholder. A share can be partially paid or fully paid, but stocks are always fully paid. Moreover, all shares are of equal denomination, but the denomination of stocks differ. Hence, if you want to invest in shares or stocks, then you should be aware of the difference between shares and stocks.
In regard to the Stock Market what does "shares outstanding" and "market capitalization" mean?
There are 3 primary measurements of the number of shares in a company: Authorized - Number of shares authorized by the Board of Directors to be issued by the company Issued - Number of shares that have been sold to the public by the company Outstanding - Issued shares, less any stock buybacks (called Treasury Stock). These shares can be sold to the public again without having to be reissued. Market Capitalization - Number of Outstanding Shares multiplied by the stock's current market price. This is ultimately what the market deems the company to be worth at any given time as opposed to the company's Book Value (Assets minus liabilities which is usually a much lower figure). Although Walmart is the world's largest company in terms of sales, it has a much lower Market Cap (or worth) than Microsoft with 90% less sales than Walmart.
What is share market what is sensex?
Just like any market, share market is where shares of companies are bought or sold. It consists of stock exchanges, stock brokers and people who buy/sell stocks. Stock exchange is the place where shares of companies are exchanged from one person to others. For this to happen, the companies have to register with the stock exchange. The exchange is carried out by brokers who are also registered entities authorized to deal in stocks and other financial instruments. If you want to buy/sell shares, you must have contacts with a broker and an account called the demat account. You can request your broker to purchase or sell shares for you at the exchange. Now you can do it online through traders like ICICIdirect. In India, there are two main stock exchanges, the Bombay stock exchange and the National stock exchange. In order to indicate the general trend of the stock market, a stock market index is used. An index is a reflection of the share/equity prices of the major companies registered with that exchange. In India we have SENSEX and NIFTY as the two major indices of the share market Sensex or the Bombay Stock exchange Sensitive Index of Equity prices represents a basket of 30 constituent stocks of large, liquid representative companies. The companies are selected on the basis of market activity with due representation given to major industries. The level of index at any time reflects the market value of the 30 component stocks relative to a base period(1978-79). More details on these points may be obtained from a large number of books and publications. An introductory book is "Intelligent stock market investing" by N. J. Yesaswy, Vision Books,New Delhi,2007
It is a place where shares of pubic listed companies are traded.In a share market, shares are bought and sold. A stock market is similar to a share market. The key difference is that a stock market helps you trade financial instruments like bonds, mutual funds, derivatives as well as shares of companies. A share market only allows trading of shares.A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock buyers and sellers. India's premier stock exchanges are the Bombay Stock Exchange and the National Stock Exchange.How to buy shares?A person cannot go directly to the stock market to buy or sell shares. Buying and selling of stocks has to be done through brokers. They are individuals, companies or agencies registered with and authorized by Sebi to trade on the stock exchanges. Brokers will charge a brokerage fee or brokerage for the assistance they provide.For earning a huge money traders can take best share market tips from best stock market tips provider.