In this article, we will know what is Share Market. What exactly is Share, and also we will know what is Share Market?
What is share?
Shares are also known by some other names – like
STOCK, SHARE, or EQUITY are the same,
“Share” means the share of a company’s capital. Divided into small equal shares, which comes to the smallest share of capital, is called Share.
Eg – XYZ company has a total capital of 1 crore, and the company distributes its 1 crore capital, 1 lakh separately, in equal value share, now every share divided, one of the smallest of the company’s capital. The part which now costs 100 rupees, this small portion of capital is called SHARE,
In this way, after the capital of XYZ Company is divided into SHARE, the capital of the company will now be called SHARE CAPITAL, which will be as follows –
TOTAL NO of SHARE X SHARE PRICE = SHARE CAPITAL
1,00,000 (one lakh SHARE) X 100 (one share) = 1,00,00,000 (1 crore total share capital)
Share – A Share of the company’s capital
Now you understand that share means a portion of the company’s capital. That is, whenever you buy a share and pay the money, you are buying SHARE and giving capital equal to the value of share purchased to that company,
And the capital invested in the business is the owner of a business, in this way you have as many shares of a company, you become the owner of that company, equal to the price of those shares,
For example, if you have 100 shares of State Bank of India and if the price of one share is Rs 300, then it means that you have 100 shares in State Bank of India X 300 = 30,000 / – (Thirty thousand rupees) as capital. Is given, and you are a participant in this profit and loss over Rs. 30 thousand,
That is, you are the owner of State Bank of India worth 30 thousand rupees.
Benefits from SHARE –
Let us also know how to make a profit by buying and selling shares.
There are two main ways to make money from SHARE, they are to earn Dividend, and to earn profit by selling Shares when the price increases, ie Value Growth Income,
In any BUSINESS, there can be two situations: Profit and loss, the company you have share, the profit that the company will make in future, in that profit i.e. Profit, as per the management decision of the company, as part of the profit, Dividend will be received, and in this way you can reduce income in the form of dividend by invest in shares of the company.
2. SHARE VALUE GROWTH
If the company is continuously doing good business and making a profit, then this increases the total value of the company and thus increasing its capital also increases the price of shares and in the event of loss, the total value of the company decreases. Due to this, the price of your shares also decreases, and you can earn profit by increasing share value by selling shares in the stock market when shares price increases.
Shares is a certificate,
Share is a certificate, shares is actually a certificate of the amount given to the company by us as capital, we can also call shares as shares certificate.
The biggest benefit of distributing capital in small shares, that is, people who have very little money can also buy some share and thus the company gets money from the general public,
What is the market?
We are all familiar with the word market,
A market is a place where something is bought and sold, where many types of shopkeepers keep their belongings at their shop and the buyer comes to the market to buy the goods they need and buys from the shopkeeper,
Like – your city or village or street market,
It is necessary to have two people in the market,
First – to buy, second – to sell
What is Share Market or Stock Market?
In absolute terms, a stock market is a market place where shares are bought and sold,
Share market is a market place where buyers and sellers of shares come together to buy and sell shares either physical or virtual,
The participants in the stock market can be a small common investor and the largest Mutual Funds, FII, and DII companies or anyone else.
Investors assign any share of BUY or SELL’s orders to the stock exchange by a system. And the stock market completes the orders of purchase or sale.
Today all orders are completed from the computerized system and all orders are matched from the best possible offers and trade is completed.
This electronic system of stock trading provides more transparency. As it shows all BUY and SELL orders on a computer screen.
Indian Share Market
In the past, shares were bought and sold directly at the market. But now everything is done on the internet at home or anywhere after computers arrive. Today all purchases and shares of shares are sold online only. Is performed,
You never need to go to Mumbai to buy or sell shares. You can buy and sell shares from any corner of the world with the help of your online banking and trading and DEMAT ACCOUNT with any Stock Broker.
Hope you can understand what is stock, and what is a stock market,
Check out our previous post – How to invest in stock market