Business\/15. Stock Market Part 1 (What is shares_ ).<\/p>\n
[fvplayer id=”513″]<\/p>\n
If you are new to the stock market<\/strong>, understanding shares<\/strong> is the first step to learning how businesses and investors make money. Let\u2019s break it down in an easy way!<\/p>\n A share<\/strong> represents ownership in a company<\/strong>. When you buy a share, you become a shareholder<\/strong> (part-owner) of that company.<\/p>\n Example:<\/strong> Companies issue shares to raise money<\/strong> for: In return, investors get ownership<\/strong> and may receive profits<\/strong> in two ways: Equity Shares<\/strong> \u2013 Common shares that give you voting rights<\/strong> and a share in profits. \u00a0Share prices go up and down<\/strong> due to: \u00a0Example: If a company announces good profits<\/strong>, demand for its shares increases, and the share price rises<\/strong>!<\/p>\n Stock Exchange<\/strong> \u2013 A marketplace where shares are bought and sold (e.g., NSE, BSE). \u00a0Buying shares is a way to invest and grow wealth over time. \u00a0Would you like to learn about how to invest in shares (Stock Market Part 2)?<\/strong><\/p>\n Absolutely! Here’s a beginner-friendly guide on:<\/p>\n (For Business Beginners \/ Students \/ Investors)<\/em><\/p>\n The Stock Market<\/strong> is a platform<\/strong> where people buy and sell ownership (called \u201cshares\u201d) of companies<\/strong>.<\/p>\n \u2705 Just like buying a piece of property gives you ownership in land, buying a share gives you ownership in a company.<\/strong><\/p><\/blockquote>\n Shares<\/strong> (also called stocks<\/strong> or equity<\/strong>) represent a unit of ownership<\/strong> in a company.<\/p>\n Companies need money to grow<\/strong> (expand factories, develop products, etc.). \u2705 This way, companies raise capital without taking loans.<\/p>\n\u00a0What are Shares?<\/strong><\/h3>\n
Suppose a company is worth \u20b910,00,000<\/strong> and issues 10,000 shares<\/strong>. If you buy 100 shares<\/strong>, you own 1% of the company<\/strong>.<\/p>\n\u00a0Why Do Companies Issue Shares?<\/strong><\/h3>\n
\u00a0Expanding their business
\u00a0Launching new products
\u00a0Paying off debts<\/p>\n
Dividends<\/strong> \u2013 A part of the company\u2019s profit paid to shareholders.
Capital Gains<\/strong> \u2013 Selling the share at a higher price than you bought it.<\/p>\n\u00a0Types of Shares in the Stock Market<\/strong><\/h3>\n
Preference Shares<\/strong> \u2013 Fixed dividend shares, but usually no voting rights.<\/p>\n\u00a0How Do Share Prices Change?<\/strong><\/h3>\n
\u00a0Company performance
\u00a0Demand & supply in the market
\u00a0Economic conditions
\u00a0Global news & events<\/p>\n\u00a0Key Terms to Know<\/strong><\/h3>\n
IPO (Initial Public Offering)<\/strong> \u2013 When a company sells shares to the public for the first time.
Market Capitalization<\/strong> \u2013 Total value of a company’s shares (Share Price \u00d7 Total Shares).
Bull Market<\/strong> \u2013 When stock prices are rising.\u00a0
Bear Market<\/strong> \u2013 When stock prices are falling.<\/p>\n\u00a0Final Thoughts<\/strong><\/h2>\n
\u00a0Always research before investing in any stock.
\u00a0The stock market has risks<\/strong>, but with knowledge, you can make smart decisions<\/strong>!<\/p>\n
\n\ud83d\udcc8 Stock Market \u2013 Part 1: What Are Shares?<\/strong><\/h1>\n
\n\ud83e\uddfe 1. What Is the Stock Market?<\/strong><\/h2>\n
\n\ud83e\udde9 2. What Are Shares?<\/strong><\/h2>\n
\ud83d\udc49 When you buy a share:<\/h3>\n
\n
\n\ud83c\udfaf 3. Why Do Companies Sell Shares?<\/strong><\/h2>\n
\nThey sell shares to the public through a process called an IPO (Initial Public Offering).<\/strong><\/p>\n
\n\ud83d\udcc9\ud83d\udcc8 4. How Do You Earn from Shares?<\/strong><\/h2>\n