Stock Market Basics India | Finance for Non Finance Training

Learn Indian Stock market basics for beginners through finance for non finance training . Learn the basics of stock market & how to invest in Indian stocks from our very own finance guru Vishal Thakkar.

Hello friends this is vishal dhaka again this time we are meeting with an interesting topic called shares share is a lot of buzz word going around in the market these days that i have bought so-and-so shares and i made a lot of money so listening to my friends advice i bought some popular shares of a company called reliance now when i bought the shares i was very

Happy because the definition of shares told me that i become the owner of the enterprise part owner that is so then we went out with friends on an outing so we we stopped by at the petrol pump which was owned and managed by reliance and we fill petrol so then the attendant came and said the you fill petrol so you pay money i said excuse me i am the owner of the

Company because i have got shares of reliance so i won’t pay why should i pay owners don’t pay right it’s my patrol bomb now so he said stop kidding early in the morning if you have filled the petrol please pay up i said look boss you can’t just ask me to pay i am the owner i am the shareholder he said you won’t understand like this let me get my manager so he got

His manager and his manager came in and he said what happened what’s the matter if you filled in petrol you got to pay i said look boss i am the shareholder of reliance and the definition of shareholder says that whoever buys equity shares of any company becomes a part owner so how can you ask me for money i will not pay money because i am the owner no sir that’s

Not true who told you all this if you buy petrol you have to pay money now i won’t pay money if you buy patrol you have no choice but to pay money look mister manager if the ceo of your company comes your would you charge him for petrol certainly not then how can you charge me i am the owner i am the shareholder i have shared of your company look mister whoever

You are understand one thing if the ceo comes apart from being the shareholder he is also the employee of the company and as per his salary package he is entitled to car and patrol so i won’t charge him are you an employee of our company i said no then you have to pay okay do you mean you don’t you charge the owners of course we charge the owners just because

You are the shareholder you don’t get to run the company so take care next time just by buying shares you don’t own the company per se you just own a part of risk and reward of being the owner and you can seize to become the owner the day you sell your shares is that clear okay thank you so much so after that conversation with the manager i did some research on

Equity shares what i understood is that if you buy shares you are becoming a part owner yes but you don’t get to run the company or you cannot own the products and services and assets of the company what i learned from this incident was that by becoming a shareholder you become a part of an owners package whereby you take risk on the enterprise as an owner and for

Taking that risk you are rewarded how in two ways one you get dividend when the company performs very well and the management decides to pay second if the company is doing very well in the market the price of the shares will go up and the appreciation you can materialize that appreciation when you sell those shares so that’s little bit about equity shares today and

One last thing if you are still wondering why the prices of shares go up and down up and down so frequently so radically and so fast let me tell you in the short run on a day-to-day basis it’s more like demand and supply you know why vegetable prices go up and down for the same reason share prices go up and down but in the long run if you hold the shares for more

Number of years the increase in share price in the long run is positively correlated with the performance of the company and most people they sell off the shares for two reasons either they are not happy with the performance that the company is giving or the performance is so well that they want to materialize the wealth so generated from the increase in price of

Shares if you wish to learn more about shares and how to become wealthy by buying and selling shares subscribe to our channel finance tube let me explain the basic difference between flat rate of interest in reducing rate of interest is that if you borrow 100 thousand where you can repay it in 10 months then the interest on 100 thousand would be charged only for