In finance a share is a unit of account for various financial instruments including stocks,

mutual funds, limited partnerships, and REIT's. In British English, the usage of the word share
alone to refer solely to stocks is so common that it almost replaces the word stock itself.

In simple Words, a share or stock is a document issued by a company, which entitles its holder
to be one of the owners of the company. A share is issued by a company or can be purchased
from the stock market.

By owning a share you can earn a portion and selling shares you get capital gain. So, your
return is the dividend plus the capital gain. However, you also run a risk of making a capital loss
if you have sold the share at a price below your buying price.

A company's stock price reflects what investors think about the stock, not necessarily what
the company is "worth." For example, companies that are growing quickly often trade at a
higher price than the company might currently be "worth." Stock prices are also affected by all
forms of company and market news. Publicly traded companies are required to report quarterly
on their financial status and earnings. Market forces and general investor opinions can also
affect share price.

Quick Facts on Stocks and Shares

• Owning a stock or a share means you are a partial owner of the company, and you get
voting rights in certain company issues
• Over the long run, stocks have historically averaged about 10% annual returns
However, stocks offer no
guarantee of any returns and can lose value, even in the long run
• Investments in stocks can generate returns through dividends, even if the price

How does one trade in shares ?

Every transaction in the stock exchange is carried out through licensed members called
brokers.

To trade in shares, you have to approach a broker However, since most stock exchange
brokers deal in very high volumes, they generally do not entertain small investors. These
brokers have a network of sub-brokers who provide them with orders.

The general investors should identify a sub-broker for regular trading in shares and palce his
order for purchase and sale through the sub-broker. The sub/broker will transmit the order
to his broker who will then execute it .

What are active Shares ?

Shares in which there are frequent and day-to-day dealings, as distinguished from partly active
shares in which dealings are not so frequent. Most shares of leading companies would be
active, particularly those which are sensitive to economic and political events and are,
therefore, subject to sudden price movements. Some market analysts would define active
shares as those which are bought and sold at least three times a week. Easy to buy or sell.
Share Market Basics - Explained
Demat refers to a dematerialised account.

Though the company is under obligation to offer the securities in both physical and demat
mode, you have the choice to receive the securities in either mode.

If you wish to have securities in demat mode, you need to indicate the name of the
depository and also of the depository participant with whom you have depository
account in your application.

It is, however desirable that you hold securities in demat form as physical securities
carry the risk of being fake, forged or stolen.

Just as you have to open an account with a bank if you want to save your money, make
cheque payments etc, Nowadays, you need to open a demat account if you want to
buy or sell stocks.

So it is just like a bank account where actual money is replaced by

shares. You have to approach the DPs (remember, they are like
bank branches), to open your demat account. Let's say your portfolio of shares looks
like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100 of ACC. All these will show in
your demat account. So you don't have to possess any physical certificates showing
that you own these shares. They are all held electronically in your account. As you
buy and sell the shares, they are adjusted in your account. Just like a bank
passbook or statement, the DP will provide you with periodic statements of holdings
and transactions.

Is a demat account a must? Nowadays, practically all trades have to be settled in

dematerialised form. Although the market regulator, the Securities and Exchange Board
of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form,
nobody wants physical shares any more.

So a demat account is a must for trading and investing.

Most banks are also DP participants, as are many brokers.

You can choose your very own DP.

To get a list, visit the NSDL and CDSL websites and see who the registered DPs are.
A broker is separate from a DP. A broker is a member of the stock exchange, who buys and
sells shares on his behalf and on behalf of his clients.

A DP will just give you an account to hold those shares.

You do not have to take the same DP that your broker takes. You can choose your own.

Is your DEMAT Account Frozen ? Steps to

Defreeze your DEMAT Account

What's new

• Quarterly Results – Significance to the Share Holder

• Gaining from Volatile Markets – Few Tips
• Why Companies Buy Back Shares?
• All About Day Trading - Is it Profitable
• Volatility of Stock Markets and its causes
• Corporate Actions Defined
• Hidden treasure in Bear Markets - A Few Tips to find it
• Basics of Mutual Funds
• Mutual Funds - Key Entities Involved
• Know how to deal with your Broker or Sub-Broker
• Happy and Joyous Life - Post Global Meltdown
• What makes the Indian Middle Class Great?
• Stock Market Quotes I Like
• Invest Safely through Systematic Investment Plans

MORE ARTICLES on SHARE MARKET BASICS -

• Share Market for Beginners :Check out articles - You Buy Prices Fall , Stock
Market Myths, What is Technical Analysis Saving VS. Investing , Do you have a
Trading Plan ? IPO - Initial Public Offering, What is the IPO Scam all about ?.
and lots more
• M u t u a l F u n d B a s i c s - What is Mutual Fund ?, Types of Mutual Funds,
Net Asset Value, Systematic Investment Plans....More
• S t o c k M a r k e t T e r m s - Definition & Terms of commonly used financial
Terms - A to.......Z Investments, stock options, Stock Trading, Company, Shares,
Dividend & Types of Shares, Debentures, Securities, Mutual Funds, IPO, Futures &
Options, What does the Share Market consist of? Exchanges, Indices, SEBI ,
Analysis of Stocks – How to check on what to buy?, Trading Terms (Limit Order, Stop
Loss, Put, Call, Booking Profit & Loss, Short & Long), Trading Options – Brokerage
Houses etc
• F a m o u s S t o c k M a r k e t Q u o t e s & S a y i n g s - “ Bulls make money.
Bears make money. Pigs get slaughtered.” Anon.

“ A stock broker is one who invests other people’s money until its all gone.”
-Woody Allen, American Film Maker

“ Most investors don’t even stop to consider how much business a company
 does. All they look at are earnings per share and net assets per share.”
-Kenneth L Fisher, Stock Market Guru.
• L a t e s t S t o c k M a r k e t N e w s : Bombay Stock Exchange, National Stock
Exchange, Mutual Funds News, Company News, Auto, Steel and Lots More

ADVFN offer FREE streaming stocks and shares data form around the world. SEE MORE | FREE
Portfolio Manager | Check your investments real-time with ADVFN's FREE stock charts | FREE stock
quote

Stock Market Terms - Definition and Meaning

Share (finance)
From Wikipedia, the free encyclopedia

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Securities

[Template:Securities&action=edit edit this box]

In financial markets, a share is a unit of account for various financial instruments

including stocks (ordinary or preferential), and investments in limited partnerships, and
REIT's. The common feature of all these is equity participation (limited in the case of
preference shares).

Contents
[hide]

• 1 National variations
o 1.1 United States
• 2 Shareholders and dividends
• 3 Valuation
• 4 Tax treatment
• 5 Voting and non-voting shares
• 6 Share certificates
• 7 see also

• 8 References

[edit] National variations

[edit] United States

In American English, the plural stocks is widely used instead of shares, in other words
to refer to the stock (or perhaps originally stock certificates) of even a single company.
Traditionalist demands that the plural stocks be used only when referring to stock of
more than one company are rarely heard nowadays..

[edit] Shareholders and dividends

The income received from shares is called a dividend, and a person owning shares is
called a shareholder.

[edit] Valuation

Shares are valued according to various principles in different markets, but a basic
premise is that a share is worth the price at which a transaction would be likely to occur
were the shares to be sold. The liquidity of markets is a major consideration as to
whether a share is able to be sold at any given time. An actual sale transaction of shares
between buyer and seller is usually considered to provide the best prima-facie market
indicator as to the 'true value' of shares at that particular moment.

[edit] Tax treatment

Tax treatment of dividends varies between territories. For instance, in India, dividends
are tax free in the hands of the shareholder, but the company paying the dividend has to
pay dividend distribution tax at 12.5%. There is also the concept of a deemed dividend,
which is not tax free. Further, Indian tax laws include provisions to stop dividend
stripping.
[edit] Voting and non-voting shares

A share of stock is one of a number of equal portions of the capital of a company,

entitling the owner to a proportion of distributed, non-reinvested profits known as
dividends, and to a portion of the value of the company in case of liquidation. Shares
can be voting or non-voting, meaning they either do or do not carry the right to vote at
shareholder meetings, for instance to elect the board of directors. Whether this right
exists often affects the value of the share. Voting and non-voting shares may be
designated in various ways, for instance as Class A and B shares respectively. Non-
voting shares were formerly quite common in the UK but are now virtually non-
existent.

In finance a share is a unit of account for various financial instruments including stocks,
mutual funds, limited partnerships, and REIT's. In British English, the usage of the word share
alone to refer solely to stocks is so common that it almost replaces the word stock itself.

In simple Words, a share or stock is a document issued by a company, which entitles its holder
to be one of the owners of the company. A share is issued by a company or can be purchased
from the stock market.

By owning a share you can earn a portion and selling shares you get capital gain. So, your
return is the dividend plus the capital gain. However, you also run a risk of making a capital loss
if you have sold the share at a price below your buying price.

A company's stock price reflects what investors think about the stock, not necessarily what
the company is "worth." For example, companies that are growing quickly often trade at a
higher price than the company might currently be "worth." Stock prices are also affected by all
forms of company and market news. Publicly traded companies are required to report quarterly
on their financial status and earnings. Market forces and general investor opinions can also
affect share price.

Quick Facts on Stocks and Shares

• Owning a stock or a share means you are a partial owner of the company, and you get
voting rights in certain company issues
• Over the long run, stocks have historically averaged about 10% annual returns
However, stocks offer no
guarantee of any returns and can lose value, even in the long run
• Investments in stocks can generate returns through dividends, even if the price

How does one trade in shares ?

Every transaction in the stock exchange is carried out through licensed members called
brokers.

To trade in shares, you have to approach a broker However, since most stock exchange
brokers deal in very high volumes, they generally do not entertain small investors. These
brokers have a network of sub-brokers who provide them with orders.

The general investors should identify a sub-broker for regular trading in shares and palce his
order for purchase and sale through the sub-broker. The sub/broker will transmit the order
to his broker who will then execute it .
What are active Shares ?

Shares in which there are frequent and day-to-day dealings, as distinguished from partly active
shares in which dealings are not so frequent. Most shares of leading companies would be
active, particularly those which are sensitive to economic and political events and are,
therefore, subject to sudden price movements. Some market analysts would define active
shares as those which are bought and sold at least three times a week. Easy to buy or sell.

Share & Stock Terms

What is a share ? | What
exactly are Investments? |
Stock Broker | What is a
Demat Account ? | Different
Kinds of Investment | What
are Premium Issues ? |
Investing Vs. Trading |
Primary & Secondary
Markets | Stock Options
Defination | Online Stock
/Share Trading | Stock
Market Tips |How Stock
Market Works ? |Stock
Market Myths | You Buy
Prices Fall - Article | What is
a Bull Market ? | What is
Technical Analysis ? |

Stock Market - Quotes,

Sayings and Oneliners
“ Bulls make money.
Bears make money.
Pigs get slaughtered.”
Anon.

“ A stock broker is
one who invests
other people’s money
until its all gone.”
-Woody Allen,
American Film Maker

“ Don’t try to buy at

the bottom and sell
at the top. Except by
liars.” -Bernard
Baruch. More
Quotations.
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MARKET INDIA" News

LATEST "Sensex India "

News

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EXCHANGE "

LATEST "MUTUAL FUND

INDIA " News

LATEST "COMMODITIES
EXCHANGE INDIA "
News

LATEST "NATIONAL
STOCK EXCHANGE
INDIA " News

LATEST News on
RELIANCE INDUSTRIES

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Market &
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The How To Trade Stock
Market System
Investing in Indian Real
Estate
Forecasting the Stock
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12 Basic Stock Investing
Rules Every Successful
Investor Should Follow
Profit from a Falling Stock
Basics Of Stock Market
Stock Trading Psychology
What is Fundamental
Analysis?
Your Best Stock Market
Investment
Stocks and Futures - What
is the Difference?
Understanding The Stock
Market
Choosing a Stock Market
Analyst
A Guide to High-Yield,
High-Risk Stocks
The ABCs Of Stock
Options
The Logic Behind
Technical Analysis
Winning at Stock Trading
Technical Analysis is a method of evaluating
future security prices and market directions based
on statistical analysis of variables such as trading
volume, price changes, etc., to identify patterns.

A stock market term - The attempt to look for

numerical trends in a random function. The stock
market used to be filled with technical analysts
deciding what to buy and sell, until it was decided
that their success rate is no better than chance.
Now technical stock analysis is virtually non-
existent. The Readers Submitted Examples page
has more on this topic.

Research and examination of the market and

securities as it relates to their supply and demand
in the marketplace. The technician uses charts and
computer programs to identify and project price
trends. The analysis includes studying price
movements and trading volumes to determine
patterns such as Head and Shoulder Formations
and W Formations. Other indicators include support
and resistance levels, and moving averages. In
contrast to fundamental analysis, technical
analysis does not consider a corporation's financial
data.

Technical analysts study trading histories to identify

price trends in particular stocks, mutual funds,
commodities, or options in specific market
sectors or in the overall financial markets. They
use their findings to predict probable, often short-
term, trading patterns in the investments that they
study. The speed (and advocates would say the
accuracy) with which the analysts do their work
depends on the development of increasingly
sophisticated computer programs.

Technical Analysis supposes markets have

memory.If so, past prices, or the current price
momentum, can give an idea of the future price
evolution. Technical Analysis is a tool to detect if a
trend (and thus the investor's behavior) will persist
or break. It gives some results but can be deceptive
as it relies mostly on graphic signals that are often
intertwined, unclear or belated. It might become a
source of representiveness heuristic (spotting
patterns where there are none)

Technical analysis has become increasingly

popular over the past several years, as more and
more people believe that the historical
performance of a stock is a strong indication of
future performance. The use of past performance
What is NET ASSET VALUE ?
The Term Net Asset Value (NAV) is used by investment companies to measure net assets. It
is calculated by subtracting liabilities from the value of a fund's securities and other items of
value and dividing this by the number of outstanding shares. Net asset value is popularly used
in newspaper mutual fund tables to designate the price per share for the fund.

The value of a collective investment fund based on the market price of securities held in its
portfolio. Units in open ended funds are valued using this measure. Closed ended investment
trusts have a net asset value but have a separate market value. NAV per share is calculated by
dividing this figure by the number of ordinary shares. Investments trusts can trade at net asset
value or their price can be at a premium or discount to NAV.

Value or purchase price of a share of stock in a mutual fund. NAV is calculated each day by
taking the closing market value of all securities owned plus all other assets such as cash,
subtracting all liabilities, then dividing the result (total net assets) by the total number of shares
outstanding.

Calculating NAVs - Calculating mutual fund net asset values is easy. Simply take the current
market value of the fund's net assets (securities held by the fund minus any liabilities) and
divide by the number of shares outstanding. So if a fund had net assets of Rs.50 lakh and there
are one lakh shares of the fund, then the price per share (or NAV) is Rs.50.00.
Saving Schemes?

stors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues

nefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are lik

The stock markets are a

every one thinks that not
could be farther from the
are a few tips that would

The number one tip at t

golden principle in the ma
enough right? Not really.

Why? Because of peer p

k Broker | What is a Demat Account ? | Different Kinds of Investment | What are Premium markets you would feel li
rkets | Stock Options Defination | Online Stock /Share Trading | Stock Market Tips |How Stock
- Article | What is a Bull Market ? | What is Technical Analysis ? | OK so you can’t resist bu
Stock and hot tips that y
before people like your b
started buying into the st
out to them at a later date

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ask yourself why has this
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ars.” -Bernard Baruch. More Quotations.
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Give time to your investm
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Hope these tips will prov

making. Happy Investing