Investing in Stocks

INVESTING IN STOCKS

What is a share?
Do you know friends or family who own their own business? The business you know may be a one-owner business (sole proprietorship) where only one person owns the business or the business may be a partnership between two or more people.

Some businesses become so large they choose to become listed companies with many part owners or shareholders. Larger businesses such as the Reliance Industries and Tata Group have thousands of part owners.

A share is a unit of ownership in a public listed company. A public listed company is listed on the BSE(Bombay Stock Exchange) or NSE(National Stock Exchange) and members of the general public may buy shares in that company. Shares in publicly listed companies are sometimes known as equities, stocks or securities.

Many of us would like to try our luck in the Stock markets. Trading stocks is one of the most lucrative methods of making money.

Here's Why :

1. You do not need a lot of money to start making money, unlike buying property and paying a monthly mortgage.

2. It requires very minimal time to trade - unlike building a conventional business.

3. It’s ‘fast’ cash and allows for quick liquidation (You can convert it to cash easily, unlike selling a property or a business).

4. It’s easy to learn how to profit from the stock market.

But You need to have your basics clear. Unless you do….you will be wasting your time and loosing money. You need to be crystal clear of each and every aspect of Investments, stock options, Stock Trading, Company, Shares, Dividend & Types of Shares, Debentures, Securities, Mutual Funds, IPO, Futures & Options, What does the Share Market consist of? Exchanges, Indices, SEBI , Analysis of Stocks – How to check on what to buy?, Trading Terms (Limit Order, Stop Loss, Put, Call, Booking Profit & Loss, Short & Long), Trading Options – Brokerage Houses etc.