Hello & Welcome friends , Now the world going from Critical Condition of Covid 19 Corona virus disease , so many people are affected by this , So it's times to " Invest in Humanity "
Whatever possible we will help people surrounding to us about food , medicine , share information about availability of beds in hospital . It is very critical situation , hope so this will ends as early as possible .
"Stay Home , Stay Safe & fight against Covid 19" , Utilised This Time to learn about Share Market with the help of which we can generate passive income source, for stabilised living Life .
Sectors In share Market:
On Stock Exchanges almost 6000+ companies are listed & these companies are coming out from Various sectors like ,
1) FMCG / fast moving consumer Goods
2) Banking
3) Automobile sector
4) Pharma Sector
5) I.T Sector
6) Metal
7) Media
8) Power
9) Telecom
10) Oil
11) Health Care
Share:
"Share gives part of ownership in the company".
After you purchased share of any company that means you are having some part of ownership in this company & after purchasing share you can hold it as long as you wish.
Share is also known as Stock , Equity, Security, Scrip, Underlying.
We can purchase share mainly from NSE ( National Stock Exchange ) & BSE ( Bombay Stock Exchange). There are different reasons to up & down in the share price but one of the main reason is " Demand & Supply" , if the demand of any share is incrases which case increase in that share price & if supply of any share is increases which decrease in that particular share price.
Outstanding Share:
"Number of share on which we can do trading".
Face Value :
Base value of share.
It is the original price of share at which , promoter of the company was bought share.
Face value of share is decided by the promoter of the company.
Face value of share is fixed during company doesn't go for stock split. After company go for stock split then the face value of the share changed.
Stock Split:
If company goes stock split the face value of share is changed .
Let's see if company goes to stock split , what its affect on Investors or traders .
Suppose , face value of A share is 2 RS
Market price of A share is 100 RS
Then, the company do the face vale of share A 1 RS.
So , the market value of share A became 50 Rs.
Company doubled the no. Of share of share holder , i.e means previously we have 10 share of face value 2 RS & market value 100 RS , Total investment - 1000.
Which became 20 share of face face value 1 Rs & market value 50 Rs , Total investment - 1000.
That means , there is no any impact of stock split on share holders Investment.
Consolidation:
It is the reverse of the Stock split.
Means , after consolidation the number of share is became half & Market price became doubled.
So, there is no impact of consolidation on share holders Investment .
Invest on your own Risk:
Investing & Trading in Share Market Is always somehow risky , so gain proper knowledge & making planning before investing & trading in Share market.
But take in mind do anything in limit that means don't do over trading .
Over trading is dangerous to our wealth , so by calculating Budget & risk you can trading or investing in Share Market & make profit.
At the time of invest in any company share check & analysis of management of company , Previous record of company , future plans of Company , Non performing Asset ( NPA) of company, invest in such company which having good management , good track record , Having expansion plans, & company which pay regular basis dividend to it's share holder.
Investing & trading in Financial company in the time Recession may be avoided or be carefully invested in such stock during Recession.
In next article we have to discussed different types of Stocks.
Thank you.
