We will know some terminology about stock market. Which is very important to work in stock market. The first thing we will know is the share, what is the stock? We will understand it very easily. Suppose you are going to start a business, you have less capital and you take four of your friends with you. That is, the four of you own the business you are starting. Here everyone invested some amount of money. Someone gave less or someone gave more means that everyone is more or less the owner i.e. shareholder.
The share you buy in the stock market means that you are owning a small part or a part of that company. The company may be worth thousands of crores of rupees but you have bought a small share in it. Share or stock is the same term. If you look at Reliance, it is a company worth several lakhs of crores of rupees, if you look at Hindustan Lever, it is also a company of several lakhs of crores of rupees. You can start here from 2 lakh 5 lakh 10 thousand taka 100 or 10 taka that means you are buying a share of a company as an owner in proportion to your capacity. To buy that share at one time you had to be physically present there and a bond paper is a security. Papers used to be given to you but now it is possible to complete them online. The government has now stopped giving physical present and security paper physically, due to which you can buy shares online and sell them at a profit by keeping a certain margin of yours.
Let us try to understand a little through a simple example, in simple words, suppose a company with a market valuation of 50 lakh rupees. Also suppose a garment company has received a very large order of 1 crore rupees but its capacity is not 1 crore rupees. As he has 50 lakh rupees and 50 lakh rupees the company will collect from outside. Due to which the above 50 lakh rupees will be sold in the share market of the company as small parts or the company will collect money from the public or resort to the bank.
Talking about why the public will buy these shares? We will try to find out a little bit about this, let’s say this 50 lakh shares were released in the market, this time each share is 50 rupees.
Now we will know why a company is listed in the stock market?
In simple words, any company wants to grow its own company i.e. wants to move forward, so that they get more big orders and the company gets a lot of progress. Suppose a company is in the business of garments. He saw that there was a lot of profit in the biscuit business, so what did he do, he started the biscuit business, and to start this business, he sold some shares from the public to the company. Again, he needed 2 crores. He has 1 crore rupees. That means he will sell 1 crore shares of that company to start this business. Any new company can’t list its name in the stock market even if it wants to, it has to follow many protocols. A company needs at least 8-10 years to get its name listed in the stock market.
That is, the company issues shares in the market to collect a certain amount of funds for the company to start the business.
Suppose a company is listed in the stock market then an opportunity works for it.
Suppose a company wants to start a sanitizer manufacturing company and collects some money from the public by selling these shares, that is, a certain part of the profit from this business is a profit on top of the money you bought the shares. doing
