Introduction to Stocks
Introduction share market, introduction to financial markets, financial
stock market
Market this word consists of so many questions in it, lets start with
first step of getting started with the market.
How can you owe a firm? It’s very easy to become owner of an organization.
To be a part or to be partial owner of a firm all you need to do is manage
to buy few of its shares.
After accomplishing task of few shares you can actively participate and
give your suggestions to company which can help company in taking crucial
decisions. And if company makes profit you will receive some part from
that profit.
Main and unique advantage is that by doing so you are subjected to least
risk factor i.e.
Suppose company becomes completely bankrupt than maximum loss you will
bare is your investment in buying that shares. Hence investing in this
way involves minimum risk as compared to private firms.
Now a days two types
of shares are available
• Private shares
• Public shares
Next question coming to your mind would be where the difference between
them is.
Both of them differ from each other in the following ways .when ever you
come to know about share of some company available they are always public
one.
Main difference between them lies in dividend sharing. Private share holders
are given more priority and constant income as compared to public which
receives profit if company makes profit which is not the case with private
share holders.
Hence if you are in search for fix and constant income for your investment
then look out for company that provide private shares
Thanks to advancement in technologies as a result of which you can buy
and sell shares from any where in the world when share market is active.
It varies from share holder to share holder how he wants to invest in
share. Some may find large companies more beneficial while some may find
small scale firms to be more profitable.
Next important concept to be kept in mind is that one should never get
carried away by just watching company’s advertisement for investing in
that company.
A share holder should always keep a check on companies fundamentals such
as in which field is it involved .how much are its annual profit as well
as its infrastructure as management relations with other companies as
well. And in addition to it also see whether company has got back up organization
to aid it in time of crisis. By keeping all such points in mind one can
always have fruitful investment in a company. Last but not the least point
that should be kept in mind whenever you are inviting in share market
is that one should always keep on selling old share and keep buying new
ones to keep your investment liquid as well as profitable.
By doing so ones investment never stuck ups as well as risk of making
loss in investment too reduces. Because some times what happens is that
once companies make loss its shareholders wait and watch until company
again makes profit.
A share holder should never get influenced and always use own brain before
taking important decision of investment in a company so as to keep one’s
investment safe.
Hence at the end of the day A share holder should invest in a company
which one feels in making more profits to get maximum advantage from investment.
