120 likes | 151 Views
Wealth Research is a reputed and leading investment services provider organization.Our experts provide services in Commodity tips,Stock exchange,finance,NSFM,NISM,BSE and all of the stock marketing.For more details visit on - http://www.wealthresearch.in/
E N D
Tips &Service By WealthResearch
Is the Stock Market andShare Marketsame? • Stock market and share market essentially mean the same thing. Both terms describe an exchange in which buyers and sellers of stock or shares may trade in a market with high liquidity WealthResearch
Stock & ShareTips Share: • Share is a unit issued by a company at the time of raising fund from the market. It is a certificate issued to a person who applies forit and is given at a value predetermined by the company. • It is the smallest unit of ownership that maybe bought or sold on or off anexchange. • Stock: • Stocks in the reference of stock market areth total number of shares a person has in one company or in manycompanies. e WealthResearch
StockMarket • Stock market is an organised market,where securities of govt, semi govt bodies and corporate enterprises are brought orsold. • It is established for the purpose of assisting, regulating and controlling business in buying selling and dealing insecurities. • In the stock market only those securitieslisted in the stock exchange aretransacted. • Individuals alone can buy and sellsecurities. WealthResearch
Types of StockMarket • 1.PrimaryMarket: • The first group of investors to whom a new issue of a security issold. • The primary market consists of the issuer and the first buyers of the issue. • The primary market can be a time more volatile than the secondary market because it is difficult to determine the underlying value of newissues. • 2.SecondaryMarket: • A market where investors purchase securities or assets from other investors, rather than from issuing companiesthemselves. • The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondarymarkets. WealthResearch
Types ofStocks • BLUE CHIP: • The blue chips carry the highestvalue. • Large, established firms with a long record of profit growth, dividend payout and a reputation for quality management, products and services are referred to as Blue Chip companies and their stocks are Blue Chipstocks. • PENNY: • Penny stocks are low-priced, speculative stocks that are veryrisky. • These stocks are generally issued by the type of companies with a short or erratic history of revenues andearnings. • INCOME: • Income stocks are stocks that pay higher-than-average dividendsov • a sustainedperiod. • These above average dividends tend to be paid by large, established companies with stableearnings. • VALUE: • A value stock is a type of stock that is currently selling at a lowprice. • Companies that have good earnings and growth potential butwhose • stock prices do not reflect this are considered valuecompanies. • Investors who buy value stocks believe that these stocks are only temporarily out of favour and will soon experience greatgrowth. er WealthResearch
Procedure for listing in StockExchanges Company decide to go public and raise fund from the market and decide upon the Total amount to be raised from theMarket. They get clarification fromSEBI. This amount is broken down in number of shares by deciding the Face Value. As per the norms of the SEBI the FV is to be multiple of 5. Normal practice is keeping this atRs10. Then the No of shares to be introduced in the Market is decided. Depending upon the response of the Stock as IPO, when it is opened on Secondary Market the price is decided. The combined collection of the firm from IPO and Secondary Market operations becomes the Market Capitalisation of the firm, from which a share of Profitability is distributed among the share holders inthe WefoarmlotfhDividRendesearch
MarketCapitalization • Market capitalization is often called as market cap is a measurement of the size of a business enterprise. • It is the total dollar market value of all of a company's outstanding shares calculated by multiplying a company's shares outstanding by the current market price of oneshare. • The companies were divided into large-cap, mid- cap, and small-cap based on the size of market capitalization. • Large-cap: $10 billion–$100 billion. Mid-cap: $1 billion–$10billion. • Small-cap: $100 million–$1billion. • WealthResearch
Importance OfIndices The stock market indexes are useful in a numberof ways to stockinvestors: 1.The market indexes provide anhistoricalperspective of stock marketperformance. 1.It provide a yardstick with whichinvestorscan compare the performance of their individual stock portfolios. 1.It acts as a forecasting tool. Studyingthehistorical performance of the stock market indexes, investors can forecast trends in themarket WealthResearch