shares

Every company requires more capital i.e. money to expand itself in the marketi.e
. money
So company can get it in two ways:
i. through money lenders or banks who charge a specific interest on the money le
nded.
ii. through shares
To raise the capital company roll out its shares in the stock market with a spec
ific amount known as ipo(initial public offering)
investment in the capital of a company through stock market.
Stock Market
these shares are available in stock Market through various stock exchanges
Popular Stock Exchanges in India are:
1. NSE(National Stock Exchange)
2. BSE(Bombay Stock Exchange)
Stock Broker
Individuals cannot directly buy/sell shares in stock Exchanges,they have do it t
hrrough intermediatries known as stock borkers
Stock Brokers are registered members of stock Exchanges they can buy/sell shares
in the share Market.
investors need to open account with stock brokers in order to trade in stock mar
ket
there are two types of accounts :
Trading Account:the account through which the shares can be directly traded in t
he stock market.
Demat (dematerialised) account:the account in whcih shares can be stored for lon
ger period of time.
Stock broker charge some commission known as brokerage from the investor
it is usually the some percent of the total amount traded
it is charged for two types of trading:
intraday:buying and selling shares in one day
delivery: buying and selling shares in more than one day
brokerage
intraday .03-.05% or flat 20-25rs
delivery .1-.5% or flat 20-25rs
other charges
AOC(Account Opening Charges)- rs0-400
AMC- 0-400
Sebi taxes
ST
STT
Transactional charges for both pay in and pay out(if any):it should be normally
free
Physical contract charges- Should be free
Paper Account Statement Charges- Should be free
Features provided by the Stock broker
1 online trading through desktop/laptop
2 online trading through mobile
3 Charts for various companies
4 call and trade for free
5 trade on its own terminals
6 toll free helpline
7 Referral system
8 should trade in commodities,F&o,Mutual funds and Currencies.
List of Stock Brokers
Geojit BNP Paribas
indiabulls
india infoline
Kotak Securities x
Reliance Money x
Sharekhan
SMC India x
Ventura
Composite Edge x
Zerodha x
IN ALL A COMPANY SHOULD CHARGE FOLLOWING CHARGES:
1. AOC
2. AMC x
3. BROKERAGE
4. STT(SECURITIES TRANSACTION TAX)
5. sERVICE TAX
6. SEBI TAX
7. STAMP CHARGES
8. TRANSACTIONAL COSTS FOR DEMAT ACCOUNTS x
9. MONTHLY HOLDING CHARGES x
10. PAPER ACCOUNT STATEMENT CHARGES x
11. PHYSICAL CONTRACT NOTE CHARGES x
12. PAY-IN PAY-OUT CHARGES x
13 idling charges
how to select a company
1. Company declares Quarterly Results
A listed company, either in BSE or NSE, declares their performance every
quarter through out the day.
Based on the performance of quarterly results market judge how the company is pe
rforming and if analysis shows that the company is doing well then its share pri
ces goes up and if analysis found that company is not performing, as per expecta
tion, then market reacts negatively to that company and the result is its share
prices falls.
First quarter duration - April to June
Results declaration on - July
Second quarter duration - July to September
Results declaration on - October
Third quarter duration - October to December
Results declaration on - January
Forth quarter duration - January to March
Results declaration on - April
Forth quarter is considered as end of financial year end.
2. Based on demand and supply
It can be determined by multiplying the price of the share and the total no. of
shares rolled out in the market
Demat account is must
YES. Demat account is must.
The market regulator, the Securities and Exchange Board of India (SEBI), has mad
e it compulsory to open the demat account if you want to buy and sell shares in
Indian share market.
So a demat account is a must for trading and investing in share market.
How to open a Demat account?
You have to approach a Depository Participant (DP) to open a Demat account.
Most banks are DP participants so you can approach them or else you can contact
us.
To have latest list of registered DP please visit websites www.nsdl.co.in and ww
w.cdslindia.com
A broker and a DP are two different people.
A broker is a member of the stock exchange, who buys and sells shares on his beh
alf and also on behalf of his customers.
A broker can also be a DP.
Following are the documents required to open Demat account
When you approach any DP, you will be guided through the formalities for opening
a demat account.
The DP will ask to provide some documents as proof of your identity and address.
Below is a list of documents out of which you have to submit one or two.
PAN card, Voters ID, Passport, Ration card, Drivers license,
Photo credit card Employee ID card, IT returns, Electricity/ Landline phone bill
etc.