Stocks

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What are stocks?

Stocks or shares as they are popularly called in India, signifies ownership of a company. Even if you own a single share or stock you are called a shareholder and can claim certain rights and entitlements.

In India once the IPO or Initial Public Offering is complete the shares are than listed on the stock exchanges and you have trading that takes place. These stocks or shares are than listed on the NSE and the BSE.

Different types of stocks or shares In India

In India, there are different types of shares that are traded. For a moment, let us talk of shares and not of stocks. There are preference shares for an example and than there are equity shares. The latter are the ones that are traded in the stock markets.

There is also a new types of shares or stocks that are called shares with Differential Voting Rights. These are popularly called DVRs. In India, you have companies like Tata Motors, that have issued shares with differential voting rights.

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Top Market Movers
Company Price (₹) Change
SBI Life Insurance 1,859.00 +2.89%
Bajaj Auto 11,279.00 +2.55%
Mahi. & Mahi 3,230.00 +1.72%
Tata Consult. Serv. 2,245.00 +1.66%
Tata Consumer 1,110.10 +1.39%
Eicher Motors 7,718.00 +1.13%
Eternal 287.10 +0.95%
Bajaj Finserv 1,891.30 +0.79%
Hindalco Industries 956.00 +0.63%
HCL Technologies 1,245.00 +0.62%
NSE NIFTY 50 Companies
SBI Life Insurance Company Ltd. ▲ 2.89% Bajaj Auto Ltd. ▲ 2.55% Mahindra & Mahindra Ltd. ▲ 1.72% Tata Consultancy Services Ltd. ▲ 1.66% Tata Consumer Products Ltd. ▲ 1.39% Eicher Motors Ltd. ▲ 1.13% Eternal Ltd. ▲ 0.95% Bajaj Finserv Ltd. ▲ 0.79% Hindalco Industries Ltd. ▲ 0.63% HCL Technologies Ltd. ▲ 0.62% Kotak Mahindra Bank Ltd. ▲ 0.49% Sun Pharmaceutical Industries Ltd. ▲ 0.41% Tech Mahindra Ltd. ▲ 0.37% UltraTech Cement Ltd. ▲ 0.33% Wipro Ltd. ▲ 0.32% ITC Ltd. ▲ 0.27% Hindustan Unilever Ltd. ▲ 0.17% Oil And Natural Gas Corporation Ltd. ▲ 0.14% Infosys Ltd. ▲ 0.08% Power Grid Corporation of India Ltd. ▲ 0.07% Coal India Ltd. ▼ 0.08% HDFC Life Insurance Company Ltd. ▼ 0.09% Max Healthcare Institute Ltd. ▼ 0.09% Titan Company Ltd. ▼ 0.33% Bharat Electronics Ltd. ▼ 0.34% Trent Ltd. ▼ 0.36% ICICI Bank Ltd. ▼ 0.51% Jio Financial Services Ltd. ▼ 0.66% Jio Financial Services Ltd. ▼ 0.66% Larsen & Toubro Ltd. ▼ 0.69% NTPC Ltd. ▼ 0.70% Bharti Airtel Ltd. ▼ 0.82% Apollo Hospitals Enterprise Ltd. ▼ 0.97% HDFC Bank Ltd. ▼ 0.97% Asian Paints Ltd. ▼ 0.97% Maruti Suzuki India Ltd. ▼ 1.03% Tata Motors Passenger Vehicles Ltd. ▼ 1.05% Dr. Reddy's Laboratories Ltd. ▼ 1.10% State Bank of India ▼ 1.12% Axis Bank Ltd. ▼ 1.22% Reliance Industries Ltd. ▼ 1.24% Tata Steel Ltd. ▼ 1.25% JSW Steel Ltd. ▼ 1.34% Cipla Ltd. ▼ 1.42% InterGlobe Aviation Ltd. ▼ 1.70% Bajaj Finance Ltd. ▼ 1.91% Grasim Industries Ltd. ▼ 2.06% Adani Ports & Special Economic Zone Ltd. ▼ 2.11% Shriram Finance Ltd. ▼ 3.06% Nestle India Ltd. ▼ 3.44% Adani Enterprises Ltd. ▼ 4.25%

How shares or stocks trade in the Indian market?

Once you come-up with an IPO, your stocks are traded on the Bombay Stock Exchange or the National Stock Exchange. There is also the MCX where stocks and shares are traded, though one must admit that it is more renowned for trading in commodities.

When and where to buy shares and stocks in India?

Trading in shares and stocks is a complicated process in itself You need to be aware of the finer things, or else you could end-up with making losses on the exchanges. What we suggest, is that if you are a beginner, you spend sometime in understanding how the markets work. Until then you may need to seek help to make money in shares and stocks.

Why to buy shares and stocks?

You have many options of investing, including real estate and fixed interest yielding instruments. You can make a choice. But, the reason to invest in shares and stocks is that you can beat inflation. Let us give you an example. Let us say that fixed instruments give you a return of 8 per cent, whereas inflation is running at 7 per cent. What you gain is a real rate of return of only 1 per cent. By investing in shares and stocks you can make much more money, thus boosting your real rate of returns. However, as we have mentioned that stocks are a risky proposition and unless you have the knowledge, you should refrain from investing.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article

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