BASICS OF STOCK MARKETING

BASICS OF STOCK MARKETING

                       

A stock market, equity market or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platforms. A stock exchange is an exchange where stockbrokers and traders can buy and sell shares of stock, bonds, and others.

    Q. What are Shares?  

        Shares are units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends. The two main types of shares are common shares and preferred shares. Physical paper stock certificates have been replaced with electronic recording of stock shares, just as mutual fund shares are recorded electronically.  

    Q. How companies issue shares?

         Companies issue shares to raise money from investors who tend to invest their money. This money is then used by companies for the development and growth of their businesses.   

     Q. Advantages of investing in shares.

• Capital Growth
•   Dividends
•   Liquidity 
•   Shareholder Benefits.