WHAT IS DIVIDEND?

  A company's profit is divided into two parts-

1) Earnings retained- It uses a portion of its profit for the growth of the company that is it invests for further expansion of the company, machines, equipments etc. This increases share value in the future.

2) Dividends- It is the portion of the profit which is distributed equally among the share holders. There are 2 types of dividends.They are-

• Cash dividends- The company pays a portion of its profit equally among its share holders in the form of cash. Cash dividends are distributed per share that is maybe 10 rs per share. Then If you have 10 shares you will get 10*10= 100 rs.
• Bonus shares- The company pays a portion of its profit to its shareholders in the form of shares. It distributes in a certain ratio. Maybe 10:1 that is a shareholder with 10 shares will get 1 share extra.

 

HOW TO CHOOSE A SHARE TRADING PORTAL FOR TRADING?

1)List down the financial centers in your area.

2)Check whether the customer service facility is good or not.

3)Now find the brokerage of these centers for buying and selling shares.The centers with less brokerage will have poor research team and vice versa.

4)Now ask for the initial amount for opening a demat account.There are zero balance accounts too.

5)Now ask for the maintenance charges for the demat account which is for an year.This is less than 500rs.

6)Have an idea about the software available for online trading.Easiness of use, options etc.

7)Check the number of banks approved by the broker for fund transfer.

8)Speed of the portal is very important.

9)Idea about the research team of each share trading portal should be known.

10)Have an idea about special features that are available like off-line order posting etc.

               Now choose wisely.Take your time.
                                                    
                                                    THANK YOU

WHAT IS ONLINE SHARE TRADING PORTAL?

Online share trading portals are financial centers or services or brokers under the government.A stock broker is an individual or organisation who has license to participate in stock market on behalf of clients.We can create demat accounts in these centers.Only through these centers can we buy or sell shares.There are two types of accounts:offline and online accounts.In some financial centers u can open an account for free but there will be maintenance charges which will be 350-500rs per year.
                             These stock brokers are governed by rules and regulations.They are governed by the SEBI Act.All these stock brokers are registered.You can check this in SEBI website.

WHAT IS NIFTY AND SENSEX?

Full form of nifty is S&P CNX Nifty. Nifty is the index of NSE( National Stock Exchange).It reflects 23 sectors of our economy.It tracks the movement of shares of 50 prominent companies in India.

Sensex is the index of BSE( Bombay Stock Exchange).Sensex tracks the movement of 30 largest and most active shares in BSE.These companies account for almost one fifth of the market capitalization of BSE.
                                           THANK YOU

WHAT IS INTRADAY TRADING?

This is a message for all those who have a demat account or a trading account.You don't need money to make profit.SHOCKING?? For example if u have a demat account, your stock broker  will lend u a huge amount( depends on your trading rate) for u to trade through intraday option. But the limitation of intraday is that u have to sell all the shares that u have bought the same day itself(before the closing of trade). If u have made profit, u get the profit. If u have loss, then u have to pay for your losses.
                                 For experienced traders intraday is the best way of making money in a daily basis.U will be shocked to know how much some traders make daily.

WHAT IS TRADING?

      Trading is the process of buying and selling of commodities or shares or securities on a short term period in order to make quick profit or long term period in order to make huge profit.
                     You do research on a company and when you have trust on it you buy shares of that company.When you buy a share, that means you own a small part of the company.When the company is in profit your share value increases.Then you can either sell your shares or you can hold on for further increase in share value.