In India there are two major stock indices the first is the sensex or the sensitivity index and the second is the nifty fifty. Almost everyone major multinational corporation trades on these indices.
Each unit of a company which an individual can purchase on payment of the market price is called a stock or share.
Each share has a face value of Rs 10 and when it is made available to the general public through an IPO or initial public offering the price of the share is multiplied by a certain number based on the company’s evaluation.
The value of a stock rises or falls depending upon the movement of the market.
If the a larger number of shares rise in price then the market rises. If a larger number of shares are sold then the overall market falls.
In order to buy a stock a person needs to have a demat account which can be opened with a broker such as Bajaj Capital, Share Khan, Motilal Oswal or any of the banks such as HDFC, ICICI etc.
If a stock is sold before a year then the profit obtained is taxable as it constitutes short term gains.
Loads of luck with your investments
-Doodle
-Doodle
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