If you are interested in the stock market
- Or intends to buy or sell shares
- Or want to earn some money by trading stocks,
- But you have no idea how stocks are traded or what the stock thing is?
- Then this tutorial is suitable for you at once.
- So start reading without delay.
Definition of Stock
A stock or share or equity of a company is a financial instrument or financial instrument that represents the ownership of an "organization or company" and its assets and income (or profit) and presents its proportional claims.
For example, if a company has 100,000 shares and you have 1,000 shares in it, it means you own 1% of the company. But this ownership means you can’t claim the company’s home office.
If you think that you have some shares in the company, the people of the company will pay special attention to you, don't forget.
Outstanding Shares refer to the sum of the shares of an employee of a company, the shares of the Company held by the officers, the shares held by the Institutional Investors, and the shares held by all the general shareholders.
What is Stock Market
A stock market is a place where an individual or an institutional investor comes to buy and sell shares. Nowadays Stock Market is an Electronic Marketplace.
Shares are bought and sold on stock exchanges (DSEL or Dhaka Stock Exchange is the stock exchange in Bangladesh https://www.dsebd.org), also have Chittagong Stock Exchange but can also be bought and sold individually. These buying and selling must comply with government rules, which are designed to prevent ordinary investors who are coming to buy or sell shares from falling into the hands of fraudsters. Government regulations are made to protect investors.
However, investing in stocks gives the highest return as much as there are ways to invest, and the risk is also the highest.
The difference between shares and company assets
The property or property of a company but not legally the property of shareholders.
- If a company goes bankrupt, the court can sell all the assets of that company
- However, the court cannot force you to sell your shares.
- However, if the company goes bankrupt, the share price falls sharply.
- On the other hand, even if a shareholder goes bankrupt, he will not be able to sell the company's assets to pay off his debts.
Why does a company leave the stock market of that company?
To raise funds to expand their business by issuing (selling) shares of a company. Money is needed to grow the business, who will pay that money? Not the market. So the company has to make money by leaving the stock market of that company.
What can you do by buying shares?
- You bought some shares, which means you can attend shareholders' meetings.
- If the company makes a profit and the company distributes its dividends, you get a proportional share.
- Happy when you can sell your shares to someone else.
- If you own a majority of the company's shares, the importance of your vote in your company's meetings will increase. You can control a company by appointing a board of directors.
- When one company buys another company, they do not buy the building, chairs, tables of the acquiring company, but all the shares.
- Being a shareholder means that you own a portion of the company's profits, and the value of a stock increases only if the company makes a profit.
How is the share price fixed?
The share price is determined by supply and demand. When the price of a share goes up, the demand goes up, everyone starts buying that share and its price goes up.
Can a company issue new shares again?
When extra money is needed, a company can issue new shares to raise money from the market.
Will the price of a share always rise?
There is no guarantee that a share price will always rise. Promoters often raise the price of a share artificially. You told Babel that prices were rising. But not at all, but the price is rising. Often people associated with the company artificially raise prices. However, the price of good shares increases with time, you will see that the price is higher today than it was two years ago.
When does a share price fall?
- When that company loses,
- Any way associated with corruption,
- Or goes bankrupt, then the share price of that company continues to fall.
Post Related: stock meaning Dhaka stock, stock market, stock Bangladesh, stock market live, stock exchange, Chittagong
stock exchange, stocks to buy, Stock, Stock market
stock exchange, stocks to buy, Stock, Stock market
Read More:
For News Update: Sangbad Protidin
For Job Update: Today Job Circular
