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Basics of Share Market

Basics of Share Market What is the share market? First of all, what is a share? A share is equity ownership in any company, so to simplify this let us understand it with an example if you own a 100% stake in a company worth Rs. 10,000, you are in need of some money so you decide to sell your 25% stake in the company worth Rs. 2500, here you have two options that you can sell your stake to huge net worth or institutional investors or you can sell it in public, so if you opt to sell it in public you need to divide it into small parts called shares so if you keep the price as Rs. 100 per share so means that by buying one share the investor becomes an owner of 1% in the company, in reality, the ownership of one share is very low. Didn't got it that what is a share? Just read it again you will get it.  Note: Share market is also called the stock market, so don't get confused when someone says stock market. A share market is a place where the trading and listing of shares takes place...

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