Stock Market

Money plays a crucial role in our lives. Every person has a desire to be rich for which people search different paths. One such path is the stock market.
A stock market is a place where buying and selling of ownership of a company take place. These units of ownership are termed shares, which collectively are known as stocks.
Many regard it as a Gamble & state it's an easy fortune for some, for others, it is a  road to doom.
There is some element of risk in this investment but majorly success depends on the person and their analysis of the stocks.
Some key things to consider while buying a share:-
• Face value(FV) of the share- Dividend is paid on the face value of the share.
For example, if a share is traded for Rs 1000 with a face value of Rs 2. 100% dividend it would mean a sum of Rs 20 is paid.
•Past performance of the company- A company with a good performance record. Have a growth potential and the chances of price rise are more.
• Any major Change in government policy -Change may have an impact on the business environment. For instance, a policy that bars or regulates new competitors from entry will be a good indicator for the existing players.
• ROI- ROI or Return on Investment tries to measure the amount of return a particular investment, relative to the investment's costs.

Post a Comment