I have a question regarding buying shares?
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Is buying shares of a stock same as buying a stake in the company it is issued by? Like if I buy shares of the stocks issued by the company United Breweries from a broker, is it same as I now have a stake in the company United Breweries.??? And btw what are those shares called which are for long holdings like for 10 or 15 years?? And what are the short term holding shares like a day or a week called ?? And what type of shares pay back dividends also?? And what brokers according to your are good ?? I have thought of using axis bank demat account for trading or mayb motilal ostwald. But motilal seems to be confusing. Any suggestion would be appreciated. And finally It would be great if you could tell me about some sites where i could learn more about stock markets.I am a total beginner. A week before i didnt even know what securities are.LOL. Thanx in advance.
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Answer:
Go buy a book called: Investing for Dummies or the Idiot's Guide to Investing. ^ not an insult - these are fantastic books. It will break down all your questions in easy to understand format. Best $20 investment you will ever make. It will also tell you about discount brokers, corporate bonds, swing and day trading. This was an US answer.
kratos11... at Yahoo! Answers Visit the source
Other answers
Enroll in a course for Share, Demat, Derivatives & Future Trading conducted by various institutes. ICICI Bank often arranges short trem courses or lecture sessions on the captiond subjects for its Demat A/c holders.I don't know about the others. One thing I must say, go independently. Motto of share market is very simple. Buy LOW, sale HIGH. Always bye STRONG scrips, don't go for PENNY stocks.You have to have the power of mental strength, dogged determination & elasticity to stay & make profit in the market. At present, L&T, BHEL, DISHMAN PHARMA, EXIDE INDUSTRIES are safe to be invested.
saumitra s
yes share holder short term (delivery) both are having tax implications intra day the company should be profit making to pay dividend who is giving sound financial advice and charge less brokerage Basic - you must n should have PAN card ( if not first apply) and Bank Account. www.sebi.gov.in www.mca.gov.in www.iepf.gov.in www.watchoutinvestorhelpline.com www.investorhelpline.in
GOOD LOOK ..
Axis bank demat account is good, you can opt for it. Investment in high stake is always good as well as profitable.
Goldy Raj
Buying shares are picking winners and losers in the economy and are moving ever further away from their core permission of price stability.
axis is good to have demat account, I have
murari prasad
When you purchase shares in the market, you are purchasing the public flow common shares. In deed, the moment you've acquired the shares, it's the same moment you are an actual owner, owning a portion of the company. Likewise, the same moment after you've sold your shares, it's the same moment you've lost your ownership of that company. This principle won't change whether you own the shares for 200 years or 2 seconds. As an owner, your voice could be heard if you attend the annual shareholders meeting. You have no say about the operation of the company, it's all controlled by the board of directors UNLESS you are elected to the board. If you are preparing to hold on to the shares for a long long time, the shares price should not be of concerned, the fundamental of the company is. If you are preparing to speculate on a stock, you make money on the price fluctuation, the fundamental is out of the window. I hope this helps.
Eddie W
Companies make public offer through IPOs. If you apply and allotted shares they are credited in your demat account. You become a stake holder whether you get one or more. You can also purchase shares on line from open market (BSE/NSE). Even you can have share in physical stock. Holding share is called stake in that company. If you are havihng demat account you can purchase hold share for few seconds and can sell immediately as you desire. Or can hold them whatever time you want. You will get dividend if you held them till the entitlement date and then sell them(ex-dividend). You will get the dividend. Shares which are listed on stock exchanges (BSE/NSE) are traded. You can approach any branch of SBI and arrange to open demat account with them and they will provide you online trading platform. Type www.bse.com or www.nse.com you will get most of the information. Mind well, share investment is most risky, without any experience you will loose. Therefore first study for six months get knowledge it is usefull even otherwise. But donot jump.
vinayak g
Hi there, let say u have business idea, but u lack capital, so you come to me and show your business plan and ask for capital, if i like it i give you money and in turn you give me stake / share in your company. let say i give u 10,000 bucks and in turn u give me 25% stake/share of ur company. wht does this mean for me, wht every profit or loss company makes i have tht much stake in it. so if tomm company makes profit of 100,000, i can claim i have right over 25,000bucks, whether i get it or not is different thing, because i alone dont decide wht to do with profit. bcoz i hold 25% only while 75% is by u or u & others. similarly if u had loss i would be partner to tht share. at the same time your liability is restricted to initial Rs10,000. so if tomm company runs in loss or defaults payment nobody can come and grab you and say give me the money since you are 25% holder, your liability is only to the tune of 10,000 and that you have already given earlier. now lets say everything is going fine company is doin good, but suddenly u need money bcoz of some emergency, wht do u do? u go to company and say give me back my money? company would say money is invested in business how do i remove it give you. more so u r in too much hurry to get money u cant go to company for money, wht do u do? so to help investor/partner with this liquidity stock markets (SM) are created, so you can go to SM and sell your stake to anybody who is ready to buy at price you are ready to sell. simple. so this is same share you can hold for long term (10-15yrs) and 1-2 days or week. its all same. as far choosing broker is concern, its not tht difficult, costing is not too different products are not different they offer u trading account & demat account, wht matters is which stock you buy bcoz thts wht will make you money and not where you have trading & demat a/c. most broker would entice you with flat fees and low commission on TRADING, dont get happy by that. in trading broker makes money and not you. do drop by to my office, we conduct free seminar & lecture for beginner would be happy help to you. call on 8898023485 and would fix up meeting with one of our Professional Stock Market - Research Analyst
Raj Sharma
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