Mukesh Tank
Company Secretary
Accounts & Audit
Fund Manager
Hr Manager
+1 Other

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Hi All,
I am a HR in a small IT firm.I am very much interested in shares these days.But don't know anything abt it.So it will be very helpful if anybody can guide me and tell me what this share is all abt and how to go abt with it.Plz i'm eagrley waiting to learn trading.Plz do help me.

Share Capital is the fund raised by a company through the issuance of common or preferential shares to individuals / institutional investors for the growth and expansion related aspects of the company. It is also known as Equity Financing through which the shareholders of the issued capital receive rights of ownership in the concerned company by buying shares of the same. Buyers of the Share Capital become owners of the company in accordance to their stake in the same and hence possess certain degree of control over its operation.

Amount of share capital a company possesses is a variable. As a company issues more and more shares to the public in lieu of fund, the amount of share capital increases.

a)Equity Share

It gives an ownership right to the holders of the stock and hence the share holders are entitled to the earnings of the company according to their stake. Holders also get dividends on those stocks as and when given by the company. Liquidity of common stocks are very high and can be bought and sold at any time of the market hours.

b)Preferred Share

These stocks also give ownership right to its holders. Its holders enjoy the privilege of receiving dividends from the company in preference to any other common share holders.

Preferred stocks have less liquidity than the common stocks.

The Share holder can expect some return in the form of Dividend and appriciation in the value of share.


Deepak Singh

You can learn by opening a trading a/c & a Demat a/c through any broker. Demat a/c is like a Bank savings a/c. Instead of money you have shares in it. Before people buy share they used to get the scripts, now everything is electronic, you dont get scripts anymore, when you buy it will lie in you demat a/c & can sell it anytime & encash it.
It's a dangerous mkt if you dont go slow & dont do long term trading. Investments are good in share than speculation.
whenever there is a big fall in the index (Sensex & Nifty), pick up some good shares & keep it till it grows by 30-40 % & slowly start booking your profits & picking up other stocks with the same profits, you will see your portfolio grow over time.
Anyway for more guidance, i am on yahoo messenger chat, add me with this id - .
Gautham Shashangan
+91 9980 636121

Hi Ramya,

Mr.Deepak's response might have given you basic understanding about shares.For beginers like you Share Trading may be dangerous and world over it's proved that who invests for long term in shares can gain.

It is because of this kind of chase for hot money,people have been trading and lots of them have burnt fingers.Look at the following example and let me know your response.

You,me,Mr.Deepak and 2 more friends have started a stationery shop in a decent locality where schools,colleges and offices are more (with Rs.25,30,35,40,50k each and the shop named as MATRIX opened in a glittering ceremony).Now say after 3months,if one of our partner(share holder) comes and asks for Rs.50k,what will be your response.Hope if my guess is correct,there are 3 options:One-Ask him politely to wait as the business has just started and yet to recover what we have invested;Two-One of us buy his stake-if any one of us are that rich!;Three-Sell some stationery even at loss and recover and pay his amount less losses incurred.....

If Mr.Deepak comes and asks after 3years for Rs.10k,we all may be very glad to give what he has demanded/requested.....

If I come and ask after 5years for Rs.15k,we all may be very glad to give what I have demanded/requested.....

If you comes and ask after 10years for Rs.50k,we all may be very glad to give what you have demanded/requested and also you might have received some decent income as profits during these 10years too.....

If many of us in the world understand this basic thing in Stock Markets like WARREN BUFFET,we might become the richest of the world.....Anybody who would not buy this basic thought process can show one stock trader who is the richest in the world.......

1. can a debenture holder be a share holder too? 2. if yes can he exercise the rights of share holder? 3. please give legal backing for the same if any
This is simple, Debenture holders gets Debenture Certificate and are like Lenders to the Company. They are entitled to interest and refund of the money invested. But Share Holders are like the part owners of the Company. They are not entitled to dividend unless the Directors of the Company recommends the same. Understand one basic thing. A Company incorporated under Companies Act, 1956 is separate legal entity and is different from its owners(Shareholders) Managers (Directors) for backup you can check out Soloman Vs Soloman case law.
CS Mukesh TANK

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