How do I know which shares to buy or when to sell shares?
You will need the expertise to make the right investment at the right time for best returns. When you are a beginner, you can start with a small investment. It is best to take the advice of share market experts and invest wisely. This will help you to understand share market investments. Later you can grow your investments as you gain more confidence.
Where can I buy shares?
You can buy shares from the share trading exchanges such as BSE and NSE through a registered broker.
Who sets the price for these shares?
A company sets a fixed price for its shares. This price is called ‘Face Value’ or ‘Par Value’. The Face Value is also used for calculations in the company’s accounting books. But when the share reaches the stock exchange, the share gets a new value which is used for trading in the stock exchange. This new price that keeps changing depending on market conditions at the stock exchange is called ‘Market Value’.
Can I buy the shares directly from the share market exchanges?
No. You will need a share market broker or sub-broker to trade in the share market exchanges.
What about my Return on Investment (ROI), do I get more than the company dividends?
Yes, other than the dividends you can also sell the shares when the market price of the share increases and earn more money. To gain maximum returns, you should buy/sell the shares at the right time. You can also hold the shares to enjoy the dividends and sell shares later.
Now, what are dividends?
When you become a shareholder, you receive dividends as part of your earnings from the Company’s profits. Your dividends are paid on the face value of a share.