Learn the complete details of share market trading
Share market is a wonderful business for making our money grow in a better way compared to traditional deposit schemes. But it is never easy to earn from this. If we understand the fundamentals and different strategies involved we could be a winner. Many people enter into share market with the recommendation of their friends. Friends are only the eye openers. They cannot stay with us all the times and all the years. Finally it is our money and we should take care of identifying the right place to invest. Trusting on others tips or guidance may be good only at the time when we are new. Later we have to grow by our self to be an independent trader.
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Share Market - Definition
Share market is a 'Open store' for anyone who wants to buy or sell shares.
Share market is also referred to as a transparent and regulated market place where shares in public and private companies are bought and sold.
Understanding the meaning of - Share
A share is a portion of ownership or equity that you have in a company. The value of your share is not constant. It will always change depending on several factors – earnings of the company, Company asset and the exchange rate at any particular point of time. Once you own shares in a particular company, you can sell them to other investors on the share market.
Shareholder - Definition
On buying a company share we become a shareholder in that company. This means that we own a percentage of that company or asset, alongside other shareholders.
Benefits of being a shareholder
There are so many benefits we can have.
Right to vote on board resolutions
Can Participate in meetings to suggest how the company or asset should be managed.
Right to attend the Annual General Meeting (AGM) of that company.
Will receive reports and information regarding the progress of the company - to help you determine the ongoing value of your investment.
It's important to be aware that the value of shares may fall to zero.
What is a Portfolio?
It is the basic step that involves buying of shares different company. This refers to the collection of shares that you own at any given time. The collection of different company shares in our account is called as portfolio.
How to earn money in Stock Market?
There are different ways of earning money in stock market. These include:
If the company or asset that you have shares in makes a profit, and the directors of the company decide to do so, this profit (or a portion of it) may be divided amongst all shareholders as a payment, or dividend. This is paid according to the number of shares that you own. Some companies also have dividend reinvestment plans in place, where additional shares are issued to shareholders (often at a slight discount and without brokerage fees) rather than paying out dividends in cash.