In general a share is a part of the ownership of a company. A person who buys a portion of a company's capital becomes a shareholder in that company's assets and as such receives a share of the company's profits in the form of an annual dividend. Lucky or astute investors may also reap a capital gain as the market value of the shares increases. In finance a share is a unit of … [Read more...]
defining: premium issue
Generally, shares have a face value (i.e. the value as in a balance sheet) of Rs.10 though not always offered to the public at this price. Companies can also offer a share with a face value of Rs.10 to the public at a higher price.and this difference between the offer price and the face value is called premium . . As per the SEBI guidelines, new companies can offer shares to … [Read more...]
what is a demat account?
Demat is a short name for dematerialised account. Just as you have to open an account with a bank to save your money , make cheque payments etc, likewise you need to open to a demat account where actual money is replaced by shares . 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), … [Read more...]
trading v/s investment
Many of the people are confused with between the words trading and investing. But for their information these two terms are not same. The biggest difference between them is the length of time you hold onto the assets. An investor is more interested in the long-term appreciation of his assets with huge profit.He’s not generally concerned about short-term fluctuations in … [Read more...]
stock market -technical analysis
Technical analysis is a method of analyzing the current situation and evaluating the future security price and market directions based on various factors like trading volume, price changes, etc., to identify pattern A stock market term - The attempt to look for numerical trends in a random function. The stock market is filled with technical analysts deciding what to buy and … [Read more...]