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Share Market

Shares Define

Shares are separate property owned by companies or financial institutions. Basically, it is part of the exchange value of a company or asset, which can fluctuate based on various market factors. In the financial situation, stocks are also called company stocks. The cost of stock as a means of raising capital represents the company to be issued. Example: Suppose a company has 1,000 shares. If you own 100 of these stocks, you own 10% of these companies. Individuals who own shares in a company are called shareholders or shareholders. Shareholders get income from the company. The stocks you usually own.

This is called a dividend payment. Shares are sold through stockbrokers acting as intermediaries. The company sells its shares on the stock exchange. The shares of the stock company are public. On the other hand, private companies sell their shares under private contracts. If you want to take a share in a private company, you must go directly to the company and convince its shareholders to sell.

Share Market

Share market, Stock market, or equity market three are all the same thing. These are the markets where you can buy or sell company stock. Buying a company’s stock means buying that company’s stock. This means that you will own a certain percentage of the company. You will also profit from it. If the company suffers losses, then you will also suffer a certain percentage of losses.

For example, small scale, suppose you have $10,000, but this is not enough. Ask your friends to bring in another $10,000 and provide them with a 50:50 partnership. In this way, regardless of the company’s future profits, 50% belongs to you.50% will be your friends. In this case, you have transferred 50% of the shares to a friend of the company. In the stock market, the same thing happens on a larger scale. The only difference is that you did not visit friends all over the world and invite them to buy company stock when you traveled.

The history of the stock market can be traced back 400 years. Around the 17th century, there was a Dutch East India Company, such as the British East India Company. Today there is a similar company in the Netherlands called the Dutch East India Company. In those days, people like to explore many things by boat. The world map has not been opened yet. Dispatch your ships to discover new lands and trade with distant places. Before this, the ship had traveled more than one thousand kilometers. This cost a lot of money. At the time, no one had the money alone.

Therefore, the share market openly invites people to invest in their boats. When these ships travel long distances to other countries and return from there with treasures. In the end, they were promised part of this wealth/money. Since more than half of the ships have not returned, lost, damaged, or robbed at this time, anything may happen, so investors recognize the company’s risk tolerance. They have invested in one boat and are more willing to invest in 5-6 of them so that at least one of them has a chance to return. The ship was sold to several investors in the past to make money, thus forming a kind of stock market.

A public tender for the purchase of the vessel was held at its terminal. The ship leaves the dock. The company’s currency crisis has been supplemented by ordinary people. And ordinary people have the opportunity to make more money. Today, every country has its own stock exchange, and every country relies heavily on stock exchanges. Where people buy and sell company stocks here. The market can be divided into two types: the primary market and the secondary market. The company sells shares in the primary market. The company decides exactly what its stock price will be.

Despite some regulations, companies cannot issue too many shares because it depends on demand and the price people are willing to pay for the company’s shares. The company is valued at $100,000, sells its 100,000 shares, and issues shares at $1 per share. If your demand is high and many people want to buy your stock, then it is obvious that the company can sell its stock. Selling stocks at a higher price.

What the company has to do today is to determine the price range, the lowest price, and the highest price. They decide to sell the stocks within this price range. It should be emphasized that every stock in the company has the same value. value. The company decides on its own how many operations need to be performed. If the total value of the company is 100,000 U.S. dollars, it can produce 100,000 shares at $1 per share. Never sell 100% of the shares in the market. The owner always retains the majority of the shares to retain his decision-making power. If he sells all the shares, all share buyers will become the owners of the company. Everyone becomes an owner, and everyone can decide on this company.

People who own more than 50% of the shares can make decisions about the company. Therefore, the founder of the company wants to retain more than 50% of the shares. For example, Mark Zuckerberg (Mark Zuckerberg) retains 60% of Facebook. People who buy company stock can sell it to others. This is the so-called secondary market, where people buy and sell stocks and exchange stocks with each other. In the primary market, the company sets prices for stocks.

The company cannot control its stock price on the secondary market. They fluctuate based on the supply and demand of inventory. Therefore, stock prices fluctuate according to supply and demand. Almost every major country has its own exchange. When so many countries are trading on the stock exchange, how do we look when we want to observe whether the company’s stock price is rising or falling in general? When the company’s stock rises or falls.

When a company wants to sell its shares on a stock exchange, it is called a “public listing.” When a company sells its shares for the first time, it is called an initial public offering. The stock is released for the first time. In the era of the East India Company, this was much easier. Anyone can sell shares of his company to the public. But today, this process is very long and complicated. Just imagine how easy it is to fool people. Anyone can announce Shell’s public offering and exaggerate the company’s value and performance. You can lie to people and people invest foolishly. In your company.

Then I can use the money to escape. So it becomes very easy to deceive someone. There are many similar scams here. Therefore, when these scams began to appear, exchanges realized that they needed to make their procedures more reliable and safer.

The country’s Securities and Exchange Commission is the regulatory agency responsible for reviewing the following issues: B. Which companies should be listed on the stock exchange and whether this is the right choice. For example, there should be many checks and balances in your company’s accounting. At least two auditors should review your company’s accounting records. The whole process takes about 3 years. If a company is to be listed, the company must have more than 50 shareholders. When you want to sell stocks, there is no demand among people. The Securities and Exchange Commission can then remove your company from the listing. So, how do you invest in the stock market? During takeoff, you can go to the pier where the ship leaves and enjoy the transaction and offer. Buy and sell stocks. Before the Internet appeared, you had to go to the Exchange building in person.

However, to use the Internet, you only need three things: a bank account, a merchant account, and a DEMAT account. (Abbreviation for “non-physical account”). Bank account, because this will take up your funds. A merchant account with which you can trade and invest. A DEMAT account is used to store the stocks you buy digitally. Nowadays, the three-in-one accounts offered by most banks have all three accounts in your bank account.

People like us can be called private investors, that is, ordinary people who want to invest in the stock market. Private investors always need brokers. A broker is a broker that connects buyers and sellers. For us, the broker can be our bank, a third-party application, or even a platform.

When we invest funds through a stockbroker, the broker retains a certain amount of commission. This is the so-called “broker commission”. Banks usually charge a brokerage fee of about 1%, but the 1% fee is slightly higher. This should not be the case. If you study carefully, you will find that the brokerage fee charged by the platform is about 0.05% or 0.1%. For those brokers who wish to trade a large number of stocks, this brokerage fee is disadvantageous.

If a large number of stocks are bought and sold in one day, a large number of funds will be used as a broker. When making long-term investments, high brokerage fees are not important because you only need to pay once.

Therefore, investment and trading are two things. Trading means quickly placing funds in different locations and withdrawing funds in specific locations. Take over quickly. In fact, trading stocks is a job in itself. Many businessmen in the country do this work all day. Take money out of one stock and deposit it in another stock. , Paste it into another and profit from it.

An important question is whether you should invest in the stock market. Many people compare it to gambling because gambling involves a lot of risks. I think this is correct because it is indeed a game of chance. If you don’t understand the nature of the company and its results, the company’s parameters, and its financial history, or you don’t understand the history and accounting information, it’s like a gamble to some extent. You don’t know how the company will operate in the future.

Listen to those who say that the company is doing well and that we should invest in the stock market. Because it is extremely risky. Obviously, when someone does this work day after day, such as a trader, they are experts in the field and have more knowledge about the stock market. Obviously, because they understand all the working principles, they will surpass others.

Therefore, I think you should never invest directly in the stock market but should trust the experts. A very smart form is mutual funds. Since with mutual funds, you will not directly decide which companies to invest in, so with mutual funds, you will trust experts and let them decide which companies you want to invest in. In fact, many mutual funds invest in many different companies.

Investors soon realized that they shouldn’t just invest in one boat. If you invest 5-6 of them, at least one will return. Mutual funds operate in the same way and can invest in various places. In this way, when you invest in mutual funds through the application, you can save yourself 0% commission. It doesn’t matter how much you invest. The question that follows is, how does he make money for himself? ? This app claims that it makes money by selling other investment products. However, it continues to invest in mutual funds for free.

This is a unique feature that I haven’t seen in any other application. Another feature of the app is that you can set goals. For example, when you want to buy a house. For cars, you need to enter the total cost in this application, how many years you want to buy, and how much you can pay.

Then, the app uses its algorithms and artificial intelligence to inform you which mutual funds you need to invest in. Using the same algorithm, you can also learn how to minimize taxes in the application. Long-term capital gains tax is a tax that you must pay when investing anywhere. In this application, Inflation Accounting, you will find out how much money you have to invest and withdraw in that year so that you have to pay the minimum tax. Therefore, if you are interested in investing in mutual funds, I suggest you install this application.

Stocks vs Shares

When talking about stocks, we treat them as the property of the company and call them stock certificates and stock certificates. Now, shareholders retain ownership of a particular company, which we call stock certificates. However, when shareholders own stocks in multiple companies, we call them stocks. Then, we can see the nuances in the details and look at an example to illustrate these steps.

For example, Mr. X has now purchased a certificate from a certain company. When he sees that Mr. X owns the certificates of several companies, we call it a stock certificate instead of a stock certificate. Less, an action is a smaller action unit. As you can see, this is a specific company certificate and shares can be issued in three ways: the first is to issue at face value, the second is to issue a premium, and the third is to issue a discount at face value. under these circumstances. In the case of a premium, these shares will be issued at a price higher than the par value, and in the case of a discount, these shares will be issued at a price lower than the par value.

Therefore, shares can also be divided into two types, the first type represents shares of legal capital. The rest are preferred shares. As we all know, all stocks have voting rights, and stocks have voting rights, but they are paid based on debt owners. Preferred shareholders enjoy privileges. It’s like action is part of it. We can say that actions and actions are smaller action units.

Stock is the largest form of stock, and stock is the smallest unit of stock. This is understandable. When the owner owns a small number of shares, what does it have to do with real estate? the company. We say that the owner owns shares here, and the owner owns shares in certain shares of various companies in the share market.

In particular, we tell the company that the shares now belong to the owner. The term “shares” is the general term used when owned by the owner. An action cannot be defined as a specific arrival action, but here it is specific and related to arrival. This is a specific term. If the owner owns shares, we can ask for more convenience for the action. Shareholders and shareholders now let us find out. The main difference is that the shareholders are shareholders.

Now, there are three ways to issue shares at premiums and discounts. Now that we have discussed all of these, let’s summarize them. Let’s find out, and briefly summarize, there are some subtle differences between a stock and a stock. action. Most investors make very little money, but you need to understand stocks and stocks. Sharing is important before you can understand the operation.

Share Price

The price of the company’s derivatives or other financial assets’ trading shares is called the stock price. It is usually found in the share market. It has the highest amount anyone is willing to pay for stocks or the lowest amount anyone can buy. Theoretical analysts use random walk technology to model the behavior of asset prices, especially stock prices, exchange rates, and commodity prices in the stock market. This approach is based on the assumption that investors act rationally and fairly. The price is the amount it takes to obtain a quote from the organization.

The stock price is not fixed, but changes according to economic conditions. If the organization is functioning well, it may increase; if the organization does not adhere to these assumptions, it may decrease.

Two strategies can be used to successfully check the stock price: Technical analysis: By looking at verifiable information on the chart, try to estimate the future development of the stock price. By looking at past stock price patterns, research professionals can usually determine whether the stock is about to enter a bullish or bearish pattern. Fundamental analysis. They are more interested in determining whether an action is over or underestimated. It does this by undermining the apparent profitability of individual companies, focusing on macroeconomic information, budget reporting, and top management functions. Which organizations need to replenish inventory? For example, high stock prices have certain relevance and may disrupt acquisitions. In addition to creating high-income opportunities for the organization, this also means that senior managers or their representatives can be rewarded for performing certain tasks throughout the year.

The organization can accelerate the development of stock value by generating profits for investors in return for its business. All you need to do is attract new investors, generate interest, and increase the stock price, but encourage current investors to continue to inherit shares rather than sell them. This is useful for organizations because as the market gets used to the increase in inventory, the sell-off will cause the value of the stock to fall. If the organization really needs to cut operating costs, it may make its business more open to financial sponsors; at this point, you can split the shares.

The availability of spare parts reduces the value of an organization’s inventory by expanding the available inventory list. For example, if a company proposes a two-to-one stock split, the absolute number of shares will be doubled, which means that the value of each share will be split. Since inventory depreciation is proportional to the amount of newly provided inventory, it will not apply.

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