Stock Investment Learning

  There are various ways through which One can invest in stock market and these are  IPO  Direct Investment in Stocks Bonds Derivatives Mutual Funds ETF Any company's stock gets listed in Stock Exchange through Initial Public Offer (IPO) . So this is the first point when company ready to sell its equity in the form of stocks to public or other institutions. Primarily, one can invest in stocks through IPO. We need to apply for the same. Apply for IPO is not a guarantee to get the stock. It is based on Bid price and allocation of the stocks by company. If you are not getting stocks through IPO then no need to worry. We can by the same stock from secondary market directly through registered stock broker at available price.  Bonds are issued with assurance of certain rate of interest by certain date. It is comparatively less volatile and safer. Bonds are also traded in stock  market.  Derivatives are future contract of fixed number of stocks called LOT to be ...

In this blog post we will try to understand why stock market exist and how it function. Any company needs capital to start with. This capital can come from initial investors or banks. When company starts functioning, at some point of time company may have expansion plan and addition fund is required for the same. In some of the cases initial investors want to sell their stake in the company and want to make some profit. In both the cases, company may decide to list in the stock exchange and sell some part of stake of the company as equity to other investors to raise some funds. Stock exchange gives an opportunity to companies to list them in exchange through IPO (Initial Public Offering) and raise funds from other investors who are interested to invest in the company. IPO of the company is issued through primary market to its first time investors publicly. Once, IPO of the company gets listed in stock exchange, it can be traded between buyer and seller in secondary market through stock...