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.
Our Blogspot
https://www.inforoarcurious.com/
https://www.inforoarcurious.com/2020/07/stock-market-invest-and-get-return.html
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