Stock Talk

Stock: - A unit of capital or part of capital.

The company uses the platform of the stock market to enhance the required capital, it’s only a legal gamble in India where most of the companies play the stake with their shareholders. Influence on stock market mostly depends upon BSE and NSE. Stock market mainly includes Nifty & Sensex, Commodity & Midcap market.

Nifty            -  The Average of top blue chip fifty companies.

Sensex/BSE  -  The Average of 30 top companies.

Midcap         -   Midcap is a market of Small Scale Industry.

Commodity   -   Commodity market include Gold, Silver, Crude, Minerals etc.

Why Stock market?

Company’s Point of view –When Company needs to borrow finance, then Stock market plays the primary option for safe capital, where the Company issue ShareAccording to MOA or AOA. How much amount of capital will rise depends upon the company goodwill. A company can issue shareswith three conditions either Par, either Premium or either Discount.

Par Issue means Full value of the share, suppose company has 10,000 values of share and the face value of each share is Rs. 100/share and when the company makes a call of 10,000 issues with the same amount of value it’s called Par Issue.

Premium Issue means when a share issue with more than the face value, suppose company has 10,000 values of share and the face value of each share is Rs. 100/share and when the company makes a call of 10,000 issues with the value of Rs.110 so this called Premium issue to share.

Discount Issue means when a share issue with less than the face value, suppose company has 10,000 values of share and the face value of each share is Rs. 100/share and when the company makes a call of 10,000 issues with the value 90 then it’s called Discount ofshares.

Shareholder's Point of View –

Risk with earning. The Share market is a most comfortable market for the stakeholder to gamble their money and to enhance their earning. Moreover it's not safe but even-though they like to play share market.

Procedure for Stakeholder's - 

After Opening the De-mat Account times comes for Investment, Shareholder must have to analyze first before investing and Analysis reflects from companies Article or Memorandum of association andmost importantly the Goodwill. Goodwill plays a vital role for any Shareholder attraction. In general sense company makes some calls to shareholder in installment basis or according to their need.

Applying share

Allotted Share

1st call

2nd call

Generally these calls are made by companies.

Bull Market

Basically Shareholder's broadly categorized into two categories: - BULL and BEAR

• Bull belongs to the optimistic thought they buy shares in bulk and after that when the price of the shares rise according to their expectation then they'll play a stake over that share.

• Bear belong to the pessimistic thought they also buy shares in bulk but for a whole period of time after that if the stock goes up little they'll make adjustments and sale their share immediately, they never keep a share for a long time.