Share Market Investment signifies investment made by the investors (general public,
institutional investors, banks, mutual funds, insurance companies,and many more
as of need) in the share market.
It is not restricted to investing in shares only. The investment might be in derivative
products such as futures, options, etc. where the underlying assets are the company
shares. Shares are certificates which represents ownership rights of the holder
in a company.investor are those who invest money in share market for benifit if
market goes positive they got benifit of that money if market down then get loss
of that money. An investor invests in share with the hope of capital in the
future. This investment is purely a speculative one. But many derivative products
have come into existence for hed purposes.
Investment in Share Markets are possible either through
• Stock Exchanges , or
• Over-the-Counter
Stock Exchanges are organized market places where stocks, bonds
are other equivalents are traded between the buyers and sellers .stock exchange
are those which through we exchange our stock. The contracts are standardized and
not customized ones. But in case of Over-the-Counter , the trade
takes place through a network of dealers.
Stocks
A corporation is generally entitled to create as many shares as it pleases. Each share is a small piece of ownership. The more shares you own, the more of the company you own, and the more control you have over the company's operations.as an example if you have more share in company as compared to other you are the ownner of the company as compared to other share holder in company.
Stock means :
A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.
Also known as "shares" or "equity".
Public Markets
How each stock market works is dependent on its internal organization and government regulation.
When a corporation decides to go public, after filing the necessary paperwork with the government and with the exchange it has chosen, it makes an initial public offering . The company will decide how many shares to issue on the public market and the price it wants to sell them for. When all the shares in the IPO are sold, the company can use the proceeds to invest in the business. The Term Net Asset Value (NAV) is used by to measure net assets. It is calculated by subtracting liabilities from the value of a fund's securities and other items of value and dividing this by the number of outstanding shares. Net asset value is popularly used in newspaper mutual fund tables to designate the price per share for the fund.
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