With everyone talking about indexes rising and falling, there would be very few who won’t be aware about the share market. Unlike earlier times when shares could only be bought or sold by the rich and healthy but now-a-days people from various sectors have the opportunity of purchasing shares? Internet trading also helps in keeping a check on the market changes right from ones place of work or home.
Shares can be easily bought directly from the company by applying in the initial public offerings (IPO) or be purchased from other investors through the share market. It is important to note that shares can only be sold or purchased to other investors only through the share market.
Whenever a new company comes to form they tender a share in the companies functioning when it offers its shares to the public so that they could raise some funds. It is the share market which has a direct bearing on the other markets, so to say the economy at large. Many associate shares being the world of finance which have the capacity of influencing the markets. Basically a share tenders power to an individual, owning which makes him/her partnership to that amount in the company. Whenever the company makes a profit it divides the profits amongst the varied list of their shareholders. It is the choice of the investor whether to use this profit for self-use or re-invest the same for buying more shares. It is also to understand the fact that companies do not distribute the whole amount of profits they retain a certain percentage and distribute the rest. It is for dividends that may get into share trading.
Internet offers ease of accessibility to all making it possible to trade shares right through the comfort of one’s home. Though there are many who would prefer to still use the services of stock brokers who would trade on their behalf at the stock market for a fee. Now-a-days even these stock brokers have gone online offering stock broking services through internet. They act as…