sold by the traders .When an investor buy a share of a company,he gets a fraction
of ownership in the company. Company issued shares (or sells stock) to investors
to raise money from the public to expand business of the company. As share holders
get a fraction of ownership in assets and earnings of the company, Company
need not pay interest or money to the investors. If investors need money, they will sell
their shares in stock exchange through Broking firms
(Like Karvy broking Ltd,Kotak securities etc.)
Over last five years, Foreign Investors invested $9000crore in Indian stock market.
A broker is a member of the stock exchange, who buys and sells stocks
on his behalf and also on behalf of his customers. Brokers just care about
whether trading account holders are trading. When traders are using more money
for trading, the Brokers will make more money by commission/brokerage charge.
share:a part or portion of a larger amount which is divided among a number of people, or to which a number of people contribute.
Stock:The market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, the stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company. The stock market makes it possible to grow small initial sums of money into large ones, and to become wealthy without taking the risk of starting a business or making the sacrifices that often accompany a high-paying career.
A particular lot of shares is called us Stock in India. In America and in other Western Countries the word Stock is commonly used for shares.
i can explain you in a simple way.
you can buy certain number of shares from public limited companies(refer wiki for public limited companies) using BSE or NSE(these two are the most traded stock exchanges, two exchanges have 5000+ listed companies)
If you want to buy a share you need demat(dematerialization) account and an account in BSE or NSE. you can not open up an account in BSE or NSE as individual. so companies called shares brokers will buy those shares for you and maintain it. they will charge an AMC for their service and brokerage to buy the share or sell the share
if you buy a stock from tata steels using NSE, you are one of the share holder of tata steels.
once you buy the stock you can sell it when the price is high. there is no limitation to keep the shares with you. simply the stocks are electronically yours.
if you need more information feel free to contact us
http://bse-nsestock-tips.blogspot.in/
informative blog post your querry to know learn to invest and trade and earn handsome amount of money in the stock markets.. its so simple to learn and earn..
