KNOWLDEGE OF STOCK MARKET PART-2. Review on General Tips on Stock Market

Friends in previous review(KNOWLEDGE OF STOCK MARKET PART-1) I describe the Basic knowledge of the stock market. Today I will clear some basic which give you deep knowledge of the stock market. Now we understand -

Q-1 How can we see the stock price on the NseIndia or Bseindia?

Ans-It is so simple to see the stock/share price on Nseindia, first we go on goggle and type on nseindia or nseindia.com, and search after some nseindia website is opened.First we see some option like Live market, product, Corporate, Membership, Domestic Investor, International Investor, Technology, education and research. Now we click on Live market where click on equity and see Nse50 stock, these stocks are called the Nse 50 stock.Here we can see the stock movement of present day.Nifty 50 stocks are NTPC, Tata motor, Hindalco, idea, grasim, HCLtech, Gail, HDFC, Yes bank, Kotak bank, etc.Here I give some example but when you open this website you can see all stocks.On leftside you cna see the Nifty position with chart.On this website you can get many information.

Q-2 What is the primary market?

Ans-Primary Market is the technical word in the stock market.Primary Market Means when company require fund to expand the business or any other useful work, then Company Issues the share to collect the fund to customer/investor in this market.Now in other-word Customer/Investor purchase the share/stock directly from the Company/firm.

Q-3 What is the secondary market?

Ans-Secondary Market is the market where financial instruments like stock/share, options, elf and future are bought/sold.It men friends when investor/customer buy the share to company then after it these shares are come in the secondary market to sell/purchase.In simple word new stock are purchase to company, after these share are sold/bought in the secondary market.

Q-4 What should I check before purchase the share to company/firm?

Ans-To purchase the stock/share we should check some fundamentals which are given below point.-

(1)-Company should be debt free.(2)-How much share(%) are kept by the promoter.

(3)-The blance sheet of company should be strong means net profit should increase in every quarter.Friend every company gives its result in every three month, So proper watch the company result of every quarter.(4)-what is the market capital of the company/firm.(5)-How much Company gives the div-dent of Investor/customer, if company gives the div-dent in every three month or six month or yearly it depend on the profit of the company.Means Company profit should increase.(5)-What is the EPS of the share means how much company earn on the one share.if EPS is good then company is strong.

Q-5 Any one Investor/ customer buy/sell the share in share market?

Ans-Yes, Any one customer/investor can purchase/sell the share after opening the demate, trading and saving account.When these account are connected then you can buy/sell the share with online.But if you do not want with online you can take the share with offline means you can give the order by telephone.But friends Before invest the share market you should have proper Knowledge, then you should do the work or You can take the advice to expert who give time for the stock market. STOCK MARKET KNOWLEDGE OF SHARE MARKET PART-3

Q-1 What is the term Face Value of Share  in the share market?

Ans-Face value is the actual value of the share which is given by the company when share issue in the primary market.This face value is written on the certificate of the share or filling form of share.Example If Company Robin Construction Ltd issue the 20 lakh share with price of 10 Rs, now price 10 is the face value of share.Now we calculate total cost of 20 lakh is 2000000*10=20000000, (2 crore). This 2 Crore capital is called Share capital.Face Value is the actual value of share/stock which is given by company or firm. This face value is written on the certificate of the company. Nowadays  these certificate not come in hard copy because shares are deposited in the demate account electronically. But I telling you some experience myself I am in this market for 15 year and my age this time 48 year, I am working in this field since 15 year ago. At that time I have seen the certificate of share/stock. My first stock was Bank of India which is allotted me by the primary market or Company. On that time its face value was 10 rs and company take the premium 20 rupees so this share was allotted me with 30 rs by company. Bank of India allotted me 100 share on that time, my total invest was 3000 Rs. When this is listed on exchange its high 75 rs I sold out this share on 65 rs.My profit was so surprised, it was first stock in share market myself.

Q-2  Describe the Book value in share market?

Ans-Book Value means=  share capital+General Reserve Capital/total  no of shares.

Q-3 What is the EPS of the Share?

Ans-Friends EPS means Earning per Share means when result is declared by the company, then eps is calculated.How we see.Firs we see what is the Earning of income=Net income of company_ paid dividend of shareholder.This earring income is divided by number of shares listed on blance sheet, This is called EPS of the company.If Eps is strong than other company, company more eps company is so fine than other.