In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, the usage of the word share alone to refer solely to stocks is so common that it almost replaces the word stock itself. In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market. By owning a share you can earn a portion and selling shares you get capital gain. So, your return is the dividend plus the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price. A company's stock price reflects what investors think about the stock, not necessarily what the company is "worth." For example, companies that are growing quickly often trade at a higher price than the company might currently be "worth." Stock prices are also affected by all forms of company and market news. Publicly traded companies are required to report quarterly on their financial status and earnings. Market forces and general investor opinions can also affect share price. Quick Facts on Stocks and Shares • • •
Owning a stock or a share means you are a partial owner of the company, and you get voting rights in certain company issues Over the long run, stocks have historically averaged about 10% annual returns However, stocks offer no guarantee of any returns and can lose value, even in the long run Investments in stocks can generate returns through dividends, even if the price
How does one trade in shares ? Every transaction in the stock exchange is carried out through licensed members called brokers. To trade in shares, you have to approach a broker However, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders. The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it .
What are active Shares ? Shares in which there are frequent and day-to-day dealings, as distinguished from partly active shares in which dealings are not so frequent. Most shares of leading companies would be active, particularly those which are sensitive to economic and political events and are, therefore, subject to sudden price movements. Some market analysts would define active shares as those which are bought and sold at least three times a week. Easy to buy or sell.
Share Market Basics - Explained Demat refers to a dematerialised account. Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode.
If you wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application. It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, Nowadays, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account. Let's say your portfolio of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100 of ACC. All these will show in your demat account. So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions. Is a demat account a must? Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing. Most banks are also DP participants, as are many brokers. You can choose your very own DP. To get a list, visit the NSDL and CDSL websites and see who the registered DPs are.
A broker is separate from a DP. A broker is a member of the stock exchange, who buys and sells shares on his behalf and on behalf of his clients. A DP will just give you an account to hold those shares. You do not have to take the same DP that your broker takes. You can choose your own.
Is your DEMAT Account Frozen ?
Steps to
Defreeze your DEMAT Account
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Terms - A to.......Z Investments, stock options, Stock Trading, Company, Shares, Dividend & Types of Shares, Debentures, Securities, Mutual Funds, IPO, Futures & Options, What does the Share Market consist of? Exchanges, Indices, SEBI , Analysis of Stocks – How to check on what to buy?, Trading Terms (Limit Order, Stop Loss, Put, Call, Booking Profit & Loss, Short & Long), Trading Options – Brokerage Houses etc F a m o u s S t o c k M a r k e t Q u o t e s & S a y i n g s - “ Bulls make money.
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Bears make money. Pigs get slaughtered.” Anon. “ A stock broker is one who invests other people’s money until its all gone.” -Woody Allen, American Film Maker “ Most investors don’t even stop to consider how much business a company
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does. All they look at are earnings per share and net assets per share.” -Kenneth L Fisher, Stock Market Guru. L a t e s t S t o c k M a r k e t N e w s : Bombay Stock Exchange, National Stock Exchange, Mutual Funds News, Company News, Auto, Steel and Lots More
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Share (finance) From Wikipedia, the free encyclopedia
(Redirected from Shares) Jump to: navigation, search This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (March 2008) Securities
[Template:Securities&action=edit edit this box]
In financial markets, a share is a unit of account for various financial instruments including stocks (ordinary or preferential), and investments in limited partnerships, and
REIT's. The common feature of all these is equity participation (limited in the case of preference shares).
Contents [hide]
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1 National variations o 1.1 United States 2 Shareholders and dividends 3 Valuation 4 Tax treatment 5 Voting and non-voting shares 6 Share certificates 7 see also
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8 References
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[edit] National variations [edit] United States In American English, the plural stocks is widely used instead of shares, in other words to refer to the stock (or perhaps originally stock certificates) of even a single company. Traditionalist demands that the plural stocks be used only when referring to stock of more than one company are rarely heard nowadays..
[edit] Shareholders and dividends The income received from shares is called a dividend, and a person owning shares is called a shareholder.
[edit] Valuation Shares are valued according to various principles in different markets, but a basic premise is that a share is worth the price at which a transaction would be likely to occur were the shares to be sold. The liquidity of markets is a major consideration as to whether a share is able to be sold at any given time. An actual sale transaction of shares between buyer and seller is usually considered to provide the best prima-facie market indicator as to the 'true value' of shares at that particular moment.
[edit] Tax treatment Tax treatment of dividends varies between territories. For instance, in India, dividends are tax free in the hands of the shareholder, but the company paying the dividend has to pay dividend distribution tax at 12.5%. There is also the concept of a deemed dividend, which is not tax free. Further, Indian tax laws include provisions to stop dividend stripping.
[edit] Voting and non-voting shares A share of stock is one of a number of equal portions of the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends, and to a portion of the value of the company in case of liquidation. Shares can be voting or non-voting, meaning they either do or do not carry the right to vote at shareholder meetings, for instance to elect the board of directors. Whether this right exists often affects the value of the share. Voting and non-voting shares may be designated in various ways, for instance as Class A and B shares respectively. Nonvoting shares were formerly quite common in the UK but are now virtually nonexistent. In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, the usage of the word share alone to refer solely to stocks is so common that it almost replaces the word stock itself. In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market. By owning a share you can earn a portion and selling shares you get capital gain. So, your return is the dividend plus the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price. A company's stock price reflects what investors think about the stock, not necessarily what the company is "worth." For example, companies that are growing quickly often trade at a higher price than the company might currently be "worth." Stock prices are also affected by all forms of company and market news. Publicly traded companies are required to report quarterly on their financial status and earnings. Market forces and general investor opinions can also affect share price. Quick Facts on Stocks and Shares • • •
Owning a stock or a share means you are a partial owner of the company, and you get voting rights in certain company issues Over the long run, stocks have historically averaged about 10% annual returns However, stocks offer no guarantee of any returns and can lose value, even in the long run Investments in stocks can generate returns through dividends, even if the price
How does one trade in shares ? Every transaction in the stock exchange is carried out through licensed members called brokers. To trade in shares, you have to approach a broker However, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders. The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it .
What are active Shares ? Shares in which there are frequent and day-to-day dealings, as distinguished from partly active shares in which dealings are not so frequent. Most shares of leading companies would be active, particularly those which are sensitive to economic and political events and are, therefore, subject to sudden price movements. Some market analysts would define active shares as those which are bought and sold at least three times a week. Easy to buy or sell.
Share & Stock Terms
What is a share ? | What exactly are Investments? | Stock Broker | What is a Demat Account ? | Different Kinds of Investment | What are Premium Issues ? | Investing Vs. Trading | Primary & Secondary Markets | Stock Options Defination | Online Stock /Share Trading | Stock Market Tips |How Stock Market Works ? |Stock Market Myths | You Buy Prices Fall - Article | What is a Bull Market ? | What is Technical Analysis ? |
Stock Market - Quotes, Sayings and Oneliners
“ Bulls make money. Bears make money. Pigs get slaughtered.” Anon. “ A stock broker is one who invests other people’s money until its all gone.” -Woody Allen, American Film Maker “ Don’t try to buy at the bottom and sell at the top. Except by liars.” -Bernard Baruch. More Quotations. LATEST "STOCK MARKET INDIA" News LATEST "Sensex India " News LATEST NEWS ON "BOMBAY STOCK EXCHANGE " LATEST "MUTUAL FUND INDIA " News LATEST "COMMODITIES EXCHANGE INDIA " News LATEST "NATIONAL STOCK EXCHANGE INDIA " News LATEST News on RELIANCE INDUSTRIES
Articles on Stock Market & Investments Key to Success in Stock Market The How To Trade Stock Market System Investing in Indian Real Estate Forecasting the Stock Market 12 Basic Stock Investing Rules Every Successful Investor Should Follow
Profit from a Falling Stock Basics Of Stock Market Stock Trading Psychology What is Fundamental Analysis? Your Best Stock Market Investment Stocks and Futures - What is the Difference? Understanding The Stock Market Choosing a Stock Market Analyst A Guide to High-Yield, High-Risk Stocks The ABCs Of Stock Options The Logic Behind Technical Analysis Winning at Stock Trading
Technical Analysis is a method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, etc., to identify patterns.
A stock market term - The attempt to look for numerical trends in a random function. The stock market used to be filled with technical analysts deciding what to buy and sell, until it was decided that their success rate is no better than chance. Now technical stock analysis is virtually nonexistent. The Readers Submitted Examples page has more on this topic. Research and examination of the market and securities as it relates to their supply and demand in the marketplace. The technician uses charts and computer programs to identify and project price trends. The analysis includes studying price movements and trading volumes to determine patterns such as Head and Shoulder Formations and W Formations. Other indicators include support and resistance levels, and moving averages. In contrast to fundamental analysis, technical analysis does not consider a corporation's financial data. Technical analysts study trading histories to identify price trends in particular stocks, mutual funds, commodities, or options in specific market sectors or in the overall financial markets. They use their findings to predict probable, often shortterm, trading patterns in the investments that they study. The speed (and advocates would say the accuracy) with which the analysts do their work depends on the development of increasingly sophisticated computer programs. Technical Analysis supposes markets have memory.If so, past prices, or the current price momentum, can give an idea of the future price evolution. Technical Analysis is a tool to detect if a trend (and thus the investor's behavior) will persist or break. It gives some results but can be deceptive as it relies mostly on graphic signals that are often intertwined, unclear or belated. It might become a source of representiveness heuristic (spotting patterns where there are none)
Technical analysis has become increasingly popular over the past several years, as more and more people believe that the historical performance of a stock is a strong indication of future performance. The use of past performance
What is NET ASSET VALUE ? The Term Net Asset Value (NAV) is used by investment companies to measure net assets. It is calculated by subtracting liabilities from the value of a fund's securities and other items of value and dividing this by the number of outstanding shares. Net asset value is popularly used in newspaper mutual fund tables to designate the price per share for the fund. The value of a collective investment fund based on the market price of securities held in its portfolio. Units in open ended funds are valued using this measure. Closed ended investment trusts have a net asset value but have a separate market value. NAV per share is calculated by dividing this figure by the number of ordinary shares. Investments trusts can trade at net asset value or their price can be at a premium or discount to NAV. Value or purchase price of a share of stock in a mutual fund. NAV is calculated each day by taking the closing market value of all securities owned plus all other assets such as cash, subtracting all liabilities, then dividing the result (total net assets) by the total number of shares outstanding. Calculating NAVs - Calculating mutual fund net asset values is easy. Simply take the current market value of the fund's net assets (securities held by the fund minus any liabilities) and divide by the number of shares outstanding. So if a fund had net assets of Rs.50 lakh and there are one lakh shares of the fund, then the price per share (or NAV) is Rs.50.00.
Saving Schemes?
stors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues
nefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are lik
k Broker | What is a Demat Account ? | Different Kinds of Investment | What are Premium rkets | Stock Options Defination | Online Stock /Share Trading | Stock Market Tips |How Stock - Article | What is a Bull Market ? | What is Technical Analysis ? |
.” Anon.
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