In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's.
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 (i.e. Primary market)or can be purchased from the stock market(i.e. Secondarymarket).
How to buy or sell the shares ?
There are licensed members called brokers to process every transaction in the stock exchange .
To trade in shares, you have to approach a broker or sub-broker to open an account called Demat Account. Most stock exchange brokers deal in very high volumes, but for small investors these brokers have a network of sub-brokers who provide them with orders.
The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it .
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. Sometime's you also run a risk of making a capital loss if you have sold the share at a price below your buying price.
Owning a stock or a share means you are a partial owner of the company, and you get voting rights in certain company issues Investments in stocks can generate returns through dividends, even if the price is low or high.
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 (i.e. Primary market)or can be purchased from the stock market(i.e. Secondarymarket).
How to buy or sell the shares ?
There are licensed members called brokers to process every transaction in the stock exchange .
To trade in shares, you have to approach a broker or sub-broker to open an account called Demat Account. Most stock exchange brokers deal in very high volumes, but for small investors these brokers have a network of sub-brokers who provide them with orders.
The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it .
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. Sometime's you also run a risk of making a capital loss if you have sold the share at a price below your buying price.
Owning a stock or a share means you are a partial owner of the company, and you get voting rights in certain company issues Investments in stocks can generate returns through dividends, even if the price is low or high.
2 comments:
Hello,
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best luck.
shirish deshpande.
http://motherschoice.blogspot.com
Hi Maruti,
Wishing you a very happy Holi.
Do pass on my regards to your family and friends.
Regards,
Milind Pawar.
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