What are stocks?
Stocks?
Shares are securities that represent a stake in a company. For companies, issuing shares is a way to raise funds to grow and invest in their business. For investors, stocks are a way to grow their money and beat inflation over time.
How does it work?
Most of the time, a stock exchange in India operates independently, as there are no "market makers" or "specialists" there. All stock transactions in India are order based and processed through an electronic limit order book. In such a setup, orders are automatically matched using the trading computer. It strives to match investors' market orders with the most suitable limit orders.
Advantages of listing on the stock market:
Only stocks that are listed on a reputable stock exchange are considered of higher value. Companies can take advantage of their reputation in the stock market by increasing their number of shareholders. Issuing shares on the market for shareholders to buy is an effective way to increase your base and shareholder base, which in turn increases your credibility.
2.Access to the capital
One of the most effective ways to provide cheap capital to a company is to issue shares of the stock company for shareholders to buy. Listed companies can, due to their reputation on the stock market, generate comparatively more capital by issuing shares and thus keep their businesses afloat and continue to operate.
3.Guaranteed value
Almost all lenders accept listed securities as collateral and provide you with lines of credit. A publicly traded company is more likely to get your loan application approved faster; because they are considered more credible in the stock market.
Investment methods :Investors can invest in an Indian stock exchange in two ways.
Primary Market: This market creates value and serves as a platform for companies to launch their new options to buy stocks and bonds that the general public can buy. Here, companies announce their shares for the first time.
Secondary market: The secondary market is also known as the stock market; acts as a trading platform for investors. Here, investors trade securities without involving the companies that issued them in the first place with the help of brokers. This market is subdivided into: auction market and dealer market Read More...
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