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Thursday, 4 September 2014

Share Market: FAQ to know


You can find immense information on share market on internet. Many people are directing towards share market to make easy and instant profits. Share market is an interesting platform to make good money. Profit and high risk in share market are two sides of a coin. One can only gain profits when the prices of shares are high. A detailed study on share market basics always help in gaining more profits. Share market is a platform where shareholders have to keep updated about the happenings around, especially about the shares they have invested. There are some set of questions that pop up in ever mind before putting their hand in the market.

Share Market: FAQ
 
What is a share?

As its name clearly defines, a share is a part of company’s profit that can be owned by individual. Companies usually offer shares in form of a document and the person holding shares are known as shareholders. When the company earns good revenue a part of profit is offered to the shareholders in form of dividends. And when a company suffers loses the value of shares fall down. It is a hit and trial method and one cannot count on definite returns from the dividend. Share is much like an asset that you can convert into money at the time of need.

What is the process of buying a share?

Next question that arises in mind of an individual is about the process of buying a share. Now there are two types of trading that occurs in share market that is of shares and bonds. A bond is a kind of a loan that companies take from investors. Companies have to pay huge amounts in return for the money they have taken as loan. Inversely there are shares that work as assets. A share is a part of company’s profit that is offered to the shareholders in form of dividends. You can buy either bonds or shares but bonds are considered to be more secure as it has nothing to do with the fluctuating finances of a company. You can buy these from internet by creating your account with a trading company and make your purchase/sell transactions. Other option is to consult an investor with good experience to help you out with the buying and selling right kind of shares.

How to earn more in share market?


When you invest your money in shares, it really become hard to predict whether you will make money or loose. You can add chances of gaining profits in share market by making an intelligent investment. If you are new to share market then I would say that you must consult an experienced share investor to help you out in finding the best companies. You should observe the market flow and work according to the changing trends of market.

Learn all the share market basics before stepping in the market as you can suffer huge loses without a detailed know-how about the market.

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