3. Consider The Following Example.
A group of people had a
start-up idea
Making empty Beverages Bottles
and Selling
Requirement Of more funds for
EXPANSION
Lets Say they Need Rs.10 lakhs
4. Getting a “Public Limited” suffix for
making Shares out into the market.
Companies Registers their names under “Indian Companies Act 1956”
By this they get the powers of converting money into SHARES.
5. What is a SHARE?What is a SHARE?
• Lets say our beverage company converted
Rs 10 lakhs(10,000,00) to 10,000 shares,
Quoting value of each Share Rs 100.
(10,000 shares × 100 rs = 10,000,00 Rs)
• So if you buy 1 Share of this company, YOU GIVE
THEM 100Rs for their business.
• It’s a Part Ownership of the company.
6. Face Value:
News Channel Example
:
Market Value:
The Price of a share Quoted by
the company at the time of
releasing Shares into the market
(Stock Market)for the first time.
It is also known as:
Nominal Value, Register Value,
Printed Value, Par Value.
The price at which the share is
sold or purchased in the Stock
Market at the CURRENT TIME.
7. Company Name Face Value Current Market Price Change in Market Price
of 1 Share of 1 Share As Compared to Yesterday
Number of Shares Traded Today
8. Dividend (Profit); Dividend % (Profit %)
• The part of the annual profit of a company which
the company decides to distribute among its
shareholders is called dividend.
• The dividend is always reckoned on the face value
of a Share, Irrespective of its market value.
9. From Where to buy Shares? Where is the Shop From Where to buy Shares? Where is the Shop
• Stock Market:
The stock market refers to a Market where the issuing and trading of
Shares is done.
Two Prominent Stock Market (/Stock Exchange) in India.
10. National Stock Exchange India Shanghai Stock Exchange China
NewYork Stock Exchange USA Tokyo Stock Exchange Japan
15. • Brokerage commissions
• Margin interest charges
• Service charges
Ways through which broker earns
money
16. Stock IndexStock Index
A list of various company names, categorized and organized on a
predefined basis.
It is a tool used by investors and financial managers to describe the
market, and to compare the return on specific investments.
Popular stock indices in India are : Sensex, Nifty, etc.