Wednesday, January 9, 2008

FreeWebSubmission.com

This Blog is an effort to provide Knowledge to our readers about how to make money from share. This site will tell you about Indian share market to be more precise. Indian share market or capital market is being controlled mostly by Bombay Stock exchange or BSE and National Stock Exchange NSE.

Why invest in shares? Usually people invest in Land or Real estate, Gold or Fixed deposits. These investments do give us some profit and all those investments are safest investments. When investing we have three most important points to consider 1 security for the investment 2 Returns from investment 3 Liquidity. The third point drives us to shares and to an extent second point too. In share market we can sell our shares anytime and the returns are higher if properly controlled.

What stock market or stock exchanges offer us?? They offer us a collection of shares from different companies for us to buy and sell. In share markets we can make money from different modes. We can make money buy buying shares at a lower price and selling at a higher price when the rates are higher. This income is called capital gains and which is taxable in India. We can make money from dividends which companies declare. We can make money from shares we don’t have possession too. How? For example if we have strong reasons to believe that a certain company’s market price is going to be affected we can sell the shares we have in possession and also sell more shares which we don’t have possession. For example, a company XYZ which has a market value of rs 500 and we have 500 shares of that company. We believe that a Government regulation which is going to be announced is going to affect the market price of shares. What we do here we sell 1000 shares out of which we have only 500 shares in possession. The remaining 500 shares we buy later in the evening at rs 450 and we make a quick profit in the losing shares rupees 25000. This shows us we must have active presence over the happenings in the stock market.

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