We could have heard the common word Share Auto, being shared by many people, known to all. Likewise in school days we could have shared between friends like food, bicycle, writing articles etc...
Shares is a plural word meant as more than one. It can be of, from thousands, to even some millions. The meaning of share is fair and impartial to all. All are commonly considered as Equity shares. Equal to all.
It provides no interest like fixed deposits in banks and some other related items. But it can yield some Dividend. Also it can produce bonus shares.
An existing corporation listed in the share market may release public issues, to expand its operations locally or even wider i.e. out of the province etc.. After having obtained approval from the concerned authority ( SEBI in India, SEC in USA) depending upon the ( amount required in millions ) Market capitalization, the number of share holders to be involved, the face value of the share depending upon the performance of the company, either it can be offered in face value or added with some premium ( A Higher value than the face value for example if it is Rs.100 /- then Rs.10 is its face value with added premium of Rs.90/-) Generally the face value is Rs.10, but Rs 100, Rs.5, Rs.2, Rs.1., face values are also seen.
WHAT IS A STOCK ?
A share is simply a divided-up unit of the value of a company. If a company is worth £100 million, and there are 50 million shares in issue, then each share is worth £2. As the overall value of the company fluctuates so does the share price. Shares can, and do, go up and down in value for various reasons. However, such movements are not usually for the most obvious of reasons.
It would be very simple if a share were priced solely on what the company in question owned - its buildings, cars, computers, value of contracts in the pipeline etc.
Shares is a plural word meant as more than one. It can be of, from thousands, to even some millions. The meaning of share is fair and impartial to all. All are commonly considered as Equity shares. Equal to all.
It provides no interest like fixed deposits in banks and some other related items. But it can yield some Dividend. Also it can produce bonus shares.
An existing corporation listed in the share market may release public issues, to expand its operations locally or even wider i.e. out of the province etc.. After having obtained approval from the concerned authority ( SEBI in India, SEC in USA) depending upon the ( amount required in millions ) Market capitalization, the number of share holders to be involved, the face value of the share depending upon the performance of the company, either it can be offered in face value or added with some premium ( A Higher value than the face value for example if it is Rs.100 /- then Rs.10 is its face value with added premium of Rs.90/-) Generally the face value is Rs.10, but Rs 100, Rs.5, Rs.2, Rs.1., face values are also seen.
WHAT IS A STOCK ?
A share is simply a divided-up unit of the value of a company. If a company is worth £100 million, and there are 50 million shares in issue, then each share is worth £2. As the overall value of the company fluctuates so does the share price. Shares can, and do, go up and down in value for various reasons. However, such movements are not usually for the most obvious of reasons.
It would be very simple if a share were priced solely on what the company in question owned - its buildings, cars, computers, value of contracts in the pipeline etc.
The total value minus company borrowings would be divided by the number of shares in issue and there would be the value of each individual share.
WHY MARKET SENTIMENT MATTERS ?
In general, share prices rise on the expectation (rather than the publication) of increased future profits and fall on published facts.
If this sounds entirely mad, bear in mind that if an analyst predicts that ABC company will double its profits then the price will rise at the time of the prediction.
When the results come through, revealing that profits have gone up "only" 75%, the price will probably fall because the current facts are less exciting than the earlier prediction.
Understanding this apparent nonsense is key to appreciating the behavior of markets in general, and individual shares in particular.
WHY COMPANIES WANT TO PLEASE SHAREHOLDERS ?
Professional investors buy shares in the hope of benefiting from a rising stream of income over the long term.
When profits are distributed to the shareholders the payments are known as "dividends". The capital value of a share - its quoted price - moves mostly in line with expectations of long term dividend payment.
There are myriad reasons why the expectation may become better or worse. A reduction in alcohol duty would guarantee a rise in distilling companies making whisky. An increase in VAT would hit retailers. More technically, a positive or negative assessment of a company's management ability could change investor sentiment enormously.
So why do companies go through all this daily public examination and give shareholders votes to - in extremis - remove directors from their positions of power?
The simple answer is that " floating " - selling shares in their companies to anonymous investors - raises millions of pounds to allow those same companies to expand into bigger and hopefully better businesses. Companies and shareholders alike have a responsibility to each other.
Group’s of Stocks :-
A Group
WHY MARKET SENTIMENT MATTERS ?
In general, share prices rise on the expectation (rather than the publication) of increased future profits and fall on published facts.
If this sounds entirely mad, bear in mind that if an analyst predicts that ABC company will double its profits then the price will rise at the time of the prediction.
When the results come through, revealing that profits have gone up "only" 75%, the price will probably fall because the current facts are less exciting than the earlier prediction.
Understanding this apparent nonsense is key to appreciating the behavior of markets in general, and individual shares in particular.
WHY COMPANIES WANT TO PLEASE SHAREHOLDERS ?
Professional investors buy shares in the hope of benefiting from a rising stream of income over the long term.
When profits are distributed to the shareholders the payments are known as "dividends". The capital value of a share - its quoted price - moves mostly in line with expectations of long term dividend payment.
There are myriad reasons why the expectation may become better or worse. A reduction in alcohol duty would guarantee a rise in distilling companies making whisky. An increase in VAT would hit retailers. More technically, a positive or negative assessment of a company's management ability could change investor sentiment enormously.
So why do companies go through all this daily public examination and give shareholders votes to - in extremis - remove directors from their positions of power?
The simple answer is that " floating " - selling shares in their companies to anonymous investors - raises millions of pounds to allow those same companies to expand into bigger and hopefully better businesses. Companies and shareholders alike have a responsibility to each other.
Group’s of Stocks :-
A Group
Most largely transacted stocks. Easy to buy / sell. Daily people can be found for both. Only active stocks will be in this Criteria. Even though the Organizations performance is better and the transactions getting reduced, those stocks will be exited from that group. Some other active stocks may be allowed.
B1 Group
B1 Group
Next to A Group.
B2 Group
B2 Group
Next to B1 Group.
Z Group
Z Group
Investors complaints must be cleared by the Organizations. At least a reply must be given. If both occurs BSE may question those organizations. If nothing response from the Organization, then all those stocks may be transferred to this group.
CERTIFICATE NUMBER :-
Now-a-days we can’t see the stocks visibly. Only monthly statements, E-mail and letters remind us about the quantity and names of stocks renewed in our De-Mat account. Previously like currency notes, like plot, land and house documents were in bonded form, bought / sold frequently.
Even today they can be seen rarely. Likewise sl. no will be given for those bond certificates. 100 stocks in one Bond is the common rule. Some may contain 5, even 1 or 2 are also found.
A Company’s stocks 100 nos were purchased by you. For those 100 stocks its certificate number is ( for example ) 5004. If I am purchasing the same 100 stocks a new folio will be opened. That number will be mentioned in the certificate.
All the same 100 stocks if sold and bought by another person, then in the same certificate his name (owner) and his new folio number will be recorded.
Being the base document the certificate remains stable. Until the certificate is existing the number will remain the same. Stock owners may be varying.
DISTINCTIVE NUMBERS :- A Bond contains 100 stocks is the common rule. Which 100 stocks? Any Identification to trace easily? Why not? Supposing an Organization releases 10 Lakh (Rs.10 /- face value ) stocks. Each and every stock may be provided individual number. For example 1 to 100 stocks in first bond, and
CERTIFICATE NUMBER :-
Now-a-days we can’t see the stocks visibly. Only monthly statements, E-mail and letters remind us about the quantity and names of stocks renewed in our De-Mat account. Previously like currency notes, like plot, land and house documents were in bonded form, bought / sold frequently.
Even today they can be seen rarely. Likewise sl. no will be given for those bond certificates. 100 stocks in one Bond is the common rule. Some may contain 5, even 1 or 2 are also found.
A Company’s stocks 100 nos were purchased by you. For those 100 stocks its certificate number is ( for example ) 5004. If I am purchasing the same 100 stocks a new folio will be opened. That number will be mentioned in the certificate.
All the same 100 stocks if sold and bought by another person, then in the same certificate his name (owner) and his new folio number will be recorded.
Being the base document the certificate remains stable. Until the certificate is existing the number will remain the same. Stock owners may be varying.
DISTINCTIVE NUMBERS :- A Bond contains 100 stocks is the common rule. Which 100 stocks? Any Identification to trace easily? Why not? Supposing an Organization releases 10 Lakh (Rs.10 /- face value ) stocks. Each and every stock may be provided individual number. For example 1 to 100 stocks in first bond, and
101 to 200 stocks in second bond and so on….. The Individual number assigned for each stock is called Distinctive numbers.
FOLIO :-
An investor while purchasing a company’s stocks for the first time, the owner name shall be changed in his name. An identification number may be given like a bank account number.
The dividends, free shares, bonus shares, announcements, all those things will be sent in connection with this number called Folio number.
FACE VALUE ;- A stock most probably contains the face value of Rs.10 /-. But in practice many organizations are issuing stocks in different values. Some of the organizations due to the lesser transactions and less value of stocks in the market, to increase the number of stocks reducing the face values are also found.
The term Share and Stock have the same meaning whereas the latter is an American Usage. Share is a kind of Right. It can be sold for money or Gifted. Purchasing of Stocks is meant as buying a part segment of the Company. According to Indian Act ,The faithful rights necessarily offered to the Investor, being rejected can be trusted by Law. By having shares they are Entitled for the following Rights :-
# Voting Rights in Important Decisions.
# Getting Profits like “ Dividend ”.
# Depending upon the Number of Shares, feeling and holding their necessary
Rights, etc.
FOLIO :-
An investor while purchasing a company’s stocks for the first time, the owner name shall be changed in his name. An identification number may be given like a bank account number.
The dividends, free shares, bonus shares, announcements, all those things will be sent in connection with this number called Folio number.
FACE VALUE ;- A stock most probably contains the face value of Rs.10 /-. But in practice many organizations are issuing stocks in different values. Some of the organizations due to the lesser transactions and less value of stocks in the market, to increase the number of stocks reducing the face values are also found.
The term Share and Stock have the same meaning whereas the latter is an American Usage. Share is a kind of Right. It can be sold for money or Gifted. Purchasing of Stocks is meant as buying a part segment of the Company. According to Indian Act ,The faithful rights necessarily offered to the Investor, being rejected can be trusted by Law. By having shares they are Entitled for the following Rights :-
# Voting Rights in Important Decisions.
# Getting Profits like “ Dividend ”.
# Depending upon the Number of Shares, feeling and holding their necessary
Rights, etc.
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