Stock Market- Invest and get Return

Stock Market- Invest and get Return

     Share market is a place we buy and sell the share, then you think what is share, the share is nothing but a part of the company's capital.


 

 

 

 In detail, if you have a grocery shop and It's capital worth is Rs 5,00,000. The grocery shop gets more profit and then you decide to expand the business, but you need more money to expand it. There are three choices number one is to get a loan but it is not good for the business's future. The next choice is to join the new partner to the business and it also has more threat in this decision because of the probability of the partner's ambivalence and also has the chance of fraud activities of him or her. There is another way in which you can add the public as a partner and gain the capital from them by splitting the capital into many shares. if you want 200,000 Rs from the public, you can split the public offering into 20,000 shares then the one share's face value is Rs.  10, then you add the premium in the share for Rs. 5 and the total value of the share will be Rs. 15, then the public will buy the share and they become part-owner of your business. Likewise, if a big company wants to expand its business, it will collect the share company through IPO(initial public offering: which company will release its new shares). So the Share is nothing but a small part of the company's capital. In a normal market, people buy and sell things likewise, in the Share market people buy and sell the shares.

 

 

 

In India, there are two famous share markets they are National Stock Exchange(NSE) and Bombay Stock Exchange(BSE). In these stock exchanges, you can buy and sell the shares in the listed companies(companies you can transact the shares in the Exchange). Some of the famous companies listed in these Exchanges are Reliance Industries, Adani Ports, State Bank of India, Axis Bank, HDFC, Colgate,    Indian Trading Company(ITC), etc. in these companies you can buy and sell the shares through this stock exchanges.

 In the Stock Market, the Price of the Shares is not stable there are some ups and downs in the price of shares due to demand and supply, economic conditions of the country, company's financial decisions, and many other factors. If you want to get profit from the shares, you want to buy shares and sell the shares when it is more than the price brought. For example, you buy 5 shares of Infosys(RS.731.25 per share) at RS.3656.25 on 21st June 2020 and then you sell the shares on 21st July 2020 at 4683.8(936.75 per share). Then your Total Profit will be RS.1027.55. Likewise, you can make a profit on trading in the Stock market.

 

 

We will post more about the Share Market so stay connected on the Blog for More Information.

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