What Is A Stock Share And Equity-haywire

Business What is a stock/share/equity The stock or capital stock of a business entity represents the original capital paid into or invested in the business by its founders. Stock is distinct from the property and the assets of a business which may fluctuate in quantity and value. There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders’ meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. Owning a stock in the company gives you an ownership and voting rights. How to buy shares of a company Shares of a company can be either bought in a primary market (through Initial Public Offering ) or a secondary market(NSE/BSE trading floor ). How do I invest in share markets All an investor need to invest in stock markets is a depository account and a trading account. The shares are stored in a dematerialised form with the depository participant and the trading is done through a brokerage dealer, with whom you have a trading account. The shares can be bought through an IPO or can be bought from secondary markets by paying a price quoted by the exchange . A small amount of brokerage also needs to be paid to the broker. Most of the brokers provide updated information about the live stock prices through their software , an investor hence can trade online . You can also trade offline by getting in touch with the company officials called your relationship manager. How to invest in futures markets To invest in futures markets, an investor needs the same necessary prerequisites a trading account and a demat account. It is again done through a broker. An investor needs to maintain a margin account, in which minimum margin money has to be maintained. The settlement is done according to the daily fluctuations of the price of the underlying. What are the types of returns investors gain from share markets There are two types of returns from stock markets price appreciation of the underlying stock the investor has bought and the dividends paid by the company. A retail investor can invest any amount of money he want to , considering the risks he can take. Its not always that an investors gains , but being well informed about the markets does help . One has to stay updated about the markets and the fundamentals of the company the investor is interested in. ..uniconindia.in/ About the Author: – – – – – – – – – – 相关的主题文章: