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What Does a Person do with a Share? When a person or an investor becomes a fractional owner of a company, he can expect a part of the profits called dividend or appreciation in value when traded on the Stock Exchange.

The BSE Sensex came down to 18664 down by 68 points and the NIFTy down by 23 points coming down to5519. Markets overall looked positive thouth the index came down at the end. The results are mixed and the rupee is crashing everyday. The Commerce Minister mentions that we have a trade deficit with 80 countries, which is not a good thing. With the elections around and weak economic scenario, markets will be shaky. It is better to buy at lows and sell at highs. HAPPY INVESTING.

Why is a share issued? A Company as it grows from a partnership to a private company and then to a public Company has to raise money at some point of time as their requirement for money increases. Money can be raised either through borrowings or through equity. In Borrowings the money has to be repaid with interest to the lenders which is expensive. In equity the buyers of the shares are owners of the company. Equity financing is cheaper as it not to be repaid. The BSE Sensex came down to 18664 down by 68 points and the NIFTy down by 23 points coming down to5519. Markets overall looked positive thouth the index came down at the end. The results are mixed and the rupee is crashing everyday. The Commerce Minister mentions that we have a trade deficit with 80 countries, which is not a good thing. With the elections around and weak economic scenario, markets will be shaky. It is better to buy at lows and sell at highs, go right here. For a share to be traded on the Stock Exchange, it has to be listed there first. For this a listing fee has to be paid first.25% of the capital of the company has to be sold to the public, before listing. It is a rule now that, 25% of the capital is to be given to the public if the share is to be listed on the Stock Exchange.

Todays Sensex went down by 2 points 19345 and the NSE was down by 13 points 5742.The RBI did not change the rates so the markets were disappointed yesterday having a bad fall.The rupee also is very weak. Today the Markets had gone down by 100 points mid session but recovered later . The recovery is a reaction to the fall. The European Markets were strong today. Markets in India fell due to the weak rupee. A lot of 2nd quarterly results are expected in the coming days.Good to pick up,during declines and sell during an upward correction. HAPPY INVESTING.

A share is a fractional ownership of a company. For eg.. The promoters of a Company having a capital of Rs.1 crore might give Rs 25 lakhs worth of shares to the public.This has to be purchased by applying for the shares when they are called for by the promoters. An application money has to be paid which forms the purchase price.