Basic of stock market (Module 1)

💲💵*BASIC OF STOCK MARKET (MODULE 1)

1)Promoter:-who start the company is called promoter.

The founder or owner of the company is called a promoter.

Ex:-Ambani Family 

The Majority shareholders of the company.

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 2)Face value (FV):-The price of share decided by the promoter of the company, during the startup of the company is called face value (F.V).

Face value can not be less than. Rs1/-

Ex:-Rs10 per share(Face value)

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3) Dividend:- It is given upon share. It is not mandatory to give every year or during the year. It depends on company's decision. 

A) Interim Dividend:-An interim dividend is given during the year before the annual general meeting.

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4)LTCG:-LONG TERM CAPITAL GAIN

If an individual holds a share/shares for more than one year then it is Tax-free at the limit of Rs:-1,00,000/-

Above Rs:-1,00,000/- it is Taxable at the rate of 10%-12%. May be changed.

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5) Split share:-When a company splits. It shares or reduces its Face value of respective shares then it's called share split.

Ex:-Tannya  holds 10 shares of TATA LTD.

Face value of TATA share  Rs 10/- and market value of TATA LTD. Is Rs:-100/-

Tannya holds10 shares so that 10*100=Rs1,000/-

If TATA split its share it reduces its share price Rs100/- per share to  Rs50/- per share then Tanya will get additional 10 shares and thus per share value will be Rs50/-

                                                             Blogger:-Ankit Singh

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