What the Best Stock Broker in India All Have in Common
In share markets, the shares are representative pieces of the company that are being sold. The value of each share will depend on the total value of the company. For example, if a company is valued at Rs 10,000 and divides its units into 100 shares, each share will have a value of Rs 100.
You can buy from 1 share to whatever you want from that same company. Regardless of how many shares you buy (even if you buy 1) you will automatically be considered a partner of the company .
The companies that decide to go public basically what they are looking for is financing, for this they publicly announce their values and thus anyone can invest by buying shares. In this way the company gets the money it needs and the investor after the purchase of the stock becomes the owner of the business and manages to have rights in that company.
When the value of the company changes, so does the value of its shares. If the company works well and generates profits the shares will rise, if the company does not generate profits the price of the shares will fall. Obviously, any investor who buys shares does so with the prospect that the shares of that company will rise and then sell and earn money.
On the other hand, there is also the option to sell a stock when you bet that its value will fall. That operation is called going short and speculates that the stock will fall and then buy it cheaper, and earn money for the difference between sale and purchase.
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Investing in the stock market is safe and transparent, publicly traded companies publicly and openly share their share capital, that is, their financial results and their economic situation. These reports have to be updated every three months with the latest results of the company during the quarter, and executives also have to offer their vision and expectations for the future. In addition, broker broker platforms are regulated; You can see and compare the different products (stocks, bonds, etc.) and each purchase you make is registered, compensated and settled on the platform itself. That is, you have the guarantee that you will receive the amount proportional to your investment.