Question (1) : Why
invest in shares?
Answer : We know now that
investing in shares is a kin to owning part of a business.
A profitable business keeps ploughing back profits to earn
more profits or should we say "compounding profits". Hence unlike investing
in assets like gold and real estate
Question (2) : What
is a share?
Share or Equity represents part of an ownership
of a business. So as a shareholder you own a piece of the action
that happens in that business. Why would you want a piece of the
action? For the rewards of course. As a shareholder you have a
Question (3) : How do I
buy a share?
Answer : Shares are traded on stock
exchanges and you can buy them only from people recognised/authority
called Broker. NKB Securities are also authorise for transection
from BSE & NSE.
Question (4) : How
much does a share cost?
Answer : The price is set
by the market and it all depends on how many buyers and sellers
think the share is worth that day. Some stocks sell for less than
Rs10 a share, others for more than Rs1,000 a share. But do not
be misled that a Rs10 share is better than a Rs1000 share.
Question (5) : What
does going short on stocks mean?
Answer : If
you buy a share with the expectation that the price will rise,
you are "long" on the stock. On the other hand, if you
expect the price of a stock that you do not own to go down you
can even sell it. Then you would be going "short" on
Question (6) : Any
age limit for Investment in share?
Answer : No
their is no age limit for investment in share.
Question (7) : How
do I sell a share?
The same way you buy one, you just hold or sell this time around.
You call your broker and tell him or her to sell your shares (or
you enter your sale with an online broker). You'll get the market
price of the stock for that day.
Question (7) : What
Dematerialisation and trading in the demat
mode is the safer and faster alternative to the physical existence
of securities. Demat as a parallel solution offers freedom from
delays, thefts, forgeries, settlement risks and paper work. This
system works through depository participants (DPs) who offer demat
services and the securities are held in the electronic form for
the investor directly by the Depository.