Manish owns a chocolate company in Delhi. Some time back, he wanted to expand his business, but to do so, he required 10 lac rupees. Manish had 5 lac rupees with him but still needed another 5 lac for implementing the planned expansion.
To raise this sum, Manish gave up 50% of the company ownership & issued 500 shares priced at Rs. 1000 each.
50 people decided to buy 10 shares each, by investing Rs. 10,000. This made each of them 1% share-holder in Manish’s company.
After 5 years, Manish’s company has grown multi-fold. With branches in Jaipur & Lucknow it is now valued at Rs. 1 crore. Each investor who bought 10 shares has also multiplied his 10,000 rupees investment to 1 lac.
Vinod & Venkat are best friends but their habits are different.
Vinod is tech-savvy & does everything online, Venkat on the other hand, prefers traditional methods over online transactions.
Likewise, their stock trading methods are also different.
An avid trader, Vinod prefers trading online. Through his online trading account he can track the market & buy or sell stocks himself at anytime from anywhere. He also receives expert advice, research reports & live market updates through multiple trading platforms accessible via his desktop, tablet & mobile phone.
Venkat, however, prefers offline trading since it gives him the opportunity to garner first-hand advice. So, when Venkat decides to buy or sell a stock, he calls his broker, who guides Venkat on the trade with professional expertise & then places the trade on Venkat’s behalf.
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