Share Market Basics
Author: Suman // Category:Many of us want to try our luck in stock market.Its one of the best methods of making money.But before investing money in stock market, it is always wise to understand the basics of stock market,its jargon etc.
So I thought of making a brief tutorial on Share markets so that you can start investing money with a bit of knowledge.
The most important and the most basic term involved in the stock market is a Share.
So what exactly is a share??
To explain in simple words, A Share is a document that is issued by the company to the Share holder, which entitles him as one of the owner of the company.
By owning a Share you can earn a portion of the companies profit or by selling them you can get capital gain.
So your sum will be a dividend plus the capital gain.
A Companies stock price determines what the investor thinks about the company.It need not necessarily tell whether a company is worth or not.These stock prices will be affected by the market news,opinion of the investors and various forms of the company.Publicly traded companies are required to report quarterly on their financial status and earnings.
Note that once you own a share you will be having the right to vote against certain company issues. And owning share does not guarantee of any returns and you can lose your money also.
Now to start trading you have to contact someone called Broker.They are licensed members,through whom every transaction takes place.These Brokers generally deal with very large volume,so they do not entertain small investors.So small investors are supposed to contact what are know as the sub-brokers.
An investor must contact the sub broker to make transactions.Then the sub-broker will contact the main broker to make the transactions.
In next post you will be learning about What exactly investments are and When to invest??
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good work.but here one thing not specify why we go to sub broker.if we have d mate account,can we do direct invest
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