Often you must have read and heard about shares in newspapers or newspapers? When we see shares written in this news paper newspaper, then one thing definitely comes in our mind that it is related to share market. But have you ever thought that what is a stock?
When does any company issue shares? What are the benefits of issuing shares to any company? There are some such questions, which may have come in your mind as well. So let’s know what is the share in this article? Will give detailed information about this.
Share means to share or share. Whenever you have bought shares of a company from the stock market, it means that you buy partly your stake in that company. That is, you buy a share in that company’s stake. When you buy shares of that company, you become a share holder or equity holder of that company.
The share or stake you buy in a stock exchange is also called equity or script.
There are two types of shares in the stock market.
An equity share is any shareholder or investor who can buy and sell shares from the primary market and secondary market.
Equity share holder is the equity share holder who holds ownership rights in any company in proportion to the number of equity share holder shares. He also has the right to vote in the affairs of the company. When we talk of shares, equity shares also come to our mind. There is no guarantee of dividend on these shares.
The company pays dividend on equity shares only after clearing the dues to all the creditors and preference share holders. In case of loss of the company, the shareholder does not get any dividend or anything, and on the contrary, in case of profit, these shareholders get the most profit.
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This is another type of share, in which the holders do not have voting rights like equity share holders. The price of these shares is less than the current price of the equity share. If the company is wound up for any reason, the first right is passed on to the holders of preference shares, and they are paid dividends and principal before the holders of equity shares. The shareholder gets his first dividend at the rate of dividend. In this whether the company is in profit or loss.
To buy shares you must first have a demat account. If you do not have a demat account then you cannot buy shares.
The finance company or bank from which you open your demat account provides you a software to buy and sell shares on the terminal of the stock market, which can be a website or mobile app.
Now you just have to go there and with the help of money lying in your demat account, you can buy the shares of any company you want to buy.
When you go to the terminal, you have the option of software. Where you can search the stock of any company.
As soon as you go to the company of that share, then you can also see the ups and downs in the share price on that share.
If you have made up your mind to buy shares then you can place a buy order on the terminal.
If you want to buy and sell shares inside the stock market, then you have to do the work of buying and selling in between this time.
There is a stipulated time to buy and sell shares in the stock market, if you want to buy or sell shares from the stock market, then you have to do all the transactions in the middle of this stipulated time, if you do not do the transaction between the stipulated time then your Transaction will not be successful.
To buy shares, you must first decide which company’s shares you want to buy. Once you have decided this, you will find it very easy to buy shares. You can buy shares by following the steps given below.
Open Demat Account
First of all, open your demat account and go to the terminal.
How to buy and sell shares?
Now search by typing the name of the company whose shares you want to buy.
As soon as you get the name of the company, select it.
View Share Price
Now before buying shares, you should see the fluctuations in the share price of that company. With this you will know how much the price of this share has increased and how much has decreased in the stock market.
Place Buy Order
The biggest advantage you will get from this is that if you know how much the minimum price of the share is going, then you can leave by placing a buy order at that price.
This will mean that as soon as the share price falls, your buy order will become successful and you will get shares at that price.
profit in share
You can place a sell order. In which you can set that price. The price you’ve already seen.
One thing you must check before buying shares?
Before buying a share, you have to see the history of the stock because if you do not see the history of the stock, then you will never know whether you can earn your profit by buying or selling that share or not.
Once you get to know about the price of the share, then you can buy that share at the lowest price and sell it at the maximum price.
right time to buy shares
The right time to buy shares is at 2:15 PM, at this time there has been a jump in the price of the share and the price of the share has also fallen. By this time the stock has come to a stable price. By which you get information about the ups and downs in the market. And you can get an idea of how much the stock should be bought and at what price one should sell.
benefits of buying shares
There are many benefits of buying shares, once you have bought and kept the shares of a company, then you can sell the shares of that company for quadruple and thousand times the price.
Provided that you have bought the shares of the company at a low price because if you bought the shares of that company at a higher price and in the future the share price of that company falls even more then you may have to suffer in such a situation.
Therefore, before buying any stock, always check its history and find out. What is the price of that share always and how far does its price go down?
rules for buying shares
There are some rules for buying shares, if you follow them then you will be able to buy shares very easily, but if you do not follow the rules of buying shares, then you may have to suffer a loss in it.
Benefits of investing in share market
Investing in shares can bring benefits in many ways.
If the company makes less profit in future, it pays some part of the profit to its shareholders as dividend. The benefit of which is given to each investor on the amount invested by him.
get bonus benefits
The company from time to time gives additional shares to its investors as a bonus. The benefit of which is available to all the shareholders.
Benefit of Right Jesus
The company issues rights to its shareholders. The profit of which is given to each shareholder in proportion to their share.
profit from increase in share price
If a company performs well, then its share prices also increase. Due to which the money invested by the investors also increases. Due to which the principal amount of the investor also increases. If the good price increases, the share holders can also sell their shares in the stock market at a good price.