Investment in StockMarket

Many people across the globe are showing interest to know atleast some basics on the stock markets, so as to venture into this activity and earn something to supplement their income. And many people despite their interest to enter the stock market activity hesitate to deploy their resources due to lack of awareness regarding the stock market.  This article is to share the certain basic aspects of the stocks and I hope it helps you add some revenue to your income.

It may be noted that the growth of economy in all fields with the demand for production, services, technology, and other aspects has accelerated during the last two decades across the world. This has lead to growth of big establishments with huge investment plans. For establishing a company, the company requires huge investment. This investment is basically mobilized as capital and debt. The debt is being mobilized from financing agencies.

The capital is mobilized from own resources, friends and relatives and/or also from public. The total capital is divided into shares—each share is of some specified sum. The interested parties/concerns can bid for such number of shares if offered either on the basis of private placement or through open offer. Subject to the established guidelines the companies will accept the bids and allot the shares to such parties a specified sum of shares. The companies can list all such shares or a part of such shares in the open market. Government has encouraged promotion of markets at all important centers for allowing the exchange of shares.  The entire share capital is named as STOCK. The markets promoted are named as STOCK MARKETS. 

The objective of promoting these STOCK MARKETS is to allow easy flexibility/liquidity among the investing public, the stock markets are also promoted with a view to enable even small investors to put-forth their savings in STOCKS, by contributing and being a part of the company.

The shareholders are eligible for share in the profits of the company; shareholder need not spare his time for the ongoing managerial activities of the company. In case of adverse conditions/loss, it is only limited to the extent of share capital actually held by the shareholder. The shareholder is having right to attend the annual general body meetings of the company with or without voting rights depending on the nature of shares holding in the company (such as preferential/general etc) In case of spurt in the market valuations or in case of need of liquidity the   shareholder can dispose of shares either partly or completely through the STOCK MARKET. For exchange of these stocks, the stock market levy nominal rates as prescribed from time to time. As such the emergence of the STOCK MARKET is   enabling the shareholders/investors to deal as comfortably as possible.

Regarding the aspects to be taken care of before investing in the STOCK MARKET  of a specified script (company), the following points may be looked into for the safety of their investment-----the functioning of the company, managerial capabilities of the company, longstanding of the company, previous profitability, earnings per share, present reserves, present debt, nature of product/service which the company is dealing- what is the scope of demand and competitors past, present and future; the prevailing policies of the governments globally affecting these products/services and ultimately arrive the business prospects of  the company in which investment is contemplated. Keeping all these aspects the investor can exercise decision either to exit or further increase in investment at an appropriate time depending on the market conditions. The above stated information is available at the company website, with the regulatory authorities or it can be ascertained from the stoke broker through which the concerned is dealing.

The government encourages investor’s especially long-term investors (long term presently is indicated as holding more than six months) with tax relaxation and simultaneously government is discouraging day-operators or short term investors with tax levies on the net earnings derived through stock market transactions. In every country the entire stock market dealings are being regulated by the REGULATORY authority constituted through local laws. This regulatory authority is expected to act as watch-dog to safeguard the interests of the investors. The interested investors can look for guidance or for redressal of their grievances if any emanated out of the stock market dealings

It is suggested that the prospective investors may observe the trends, techniques and other practical aspects consistently for not less than three months either on his own through internet or personally attending the dealing rooms. The practical experiences will help the investors to understand the concept and proceed cautiously initially.  Across the globe various awareness programs are being organized, at the instance of government, to impart basic knowledge on the stock market activities on an ongoing basis. The interested prospective investors can avail these opportunities and proceed as deems fit depending on the individual options.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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Comments

Lisa G.   Health Wellness & Wealth Consultant I'm not very knowledgable on this subject, but your article sure sounds good. I took a couple of classes in investing and stock marketing, but..think I'll have to leave that one for others..lol. I topped your article! Great read for those who are into the stocks! May 25th 2008 15:51

coolsakule syndicate  Freelance VA Wise investment is good for Health & Wealth. but money steal by broker choice. make it with a good planner to keep your money safe and secure. Be awaring of your investment in indian mkt. this month. Aug 9th 2010 04:15

coolsakule syndicate  Freelance VA for International players beware exporting your product to suddenly increase in dollar rate. Aug 9th 2010 04:19