Stock is a security that represents a shareholder’s ownership in a company. Simply means if you buy even a single share of a company, you become an owner of that small portion of a public corporation. When the value of the company rises, eventually it rises the value of your investment. Stock gives a right ‘residual claim’ to shareholders on corporate earnings in terms of capital gain and dividend.
Companies need to go through this process before releasing the shares to the market called IPO ‘Initial Public Offering’. After this process, investors can buy or sell shares on a platform known as a Stock Exchange.
Let’s take an example-
Suppose, Renu buys 100 Shares of a company at Rs.10 per share. It means she invested of total Rs.1000 in a company. After six months the price per share increased to Rs.30. Now, her investment value has also increased to Rs.3000.
If she wants to sell these shares, she would gain a net profit of Rs.2000.
Why Company issue Shares?
Most of the Big company’s started as small entities. They need a certain capital to operate a company like an office rent, Employee salary, Buy Raw materials, Furniture, Marketing, Distribution network, and many other things. So, the Company sells shares to the public to raise capital for its business.
A Startup can raise funds either by selling shares or by Borrowing money (Debt). Buying and Selling shares are handled through Stock Exchanges with stock brokers.
TO 5 STOCK BROKERS COMPANIES IN INDIA
Nithin Kamath, Nikhil Kamath
Zerodha’s name is derived from a combination of Zero and ‘Rodha’ which means Barrier a Sanskrit word. It’s one of the largest Brokerage firms in India. Zerodha has built its own trading software like Zerodha Kite, Coin, Varsity, and many other tools. Over 6.2 million users are active on Zerodha.
Ravi Kumar, Kavitha Subramanian, Shrini Vishwanath
Upstox is one of the brokerage firms that offer trading opportunities at low prices. Its mission is to bring prosperity to every Indian. The company offers its trade services in various segments such as Equity, Currencies, and commodities, and these options are available on Upstox Pro web and Upstox Pro Mobile trading platforms.
- Angel Broking
Dinesh D. Thakkar
Now, Investors know the company as Angel One, it’s one of the financial platforms for all financial needs. Angel one company is a member of the National Stock Exchange of India, Bombay Stock Exchange, National Commodity & Derivatives Exchange Limited, and Multi Commodity Exchange of India.
The company offers various services such as Stock broking, commodity trading, depository services, personal loans, mutual funds distribution, and many other services.
Lalit Keshre, Ishan Bansal, Harsh Jain, Neeraj Singh
Groww is an online investment platform that allows users to understand mutual funds and investments so they invest their money without any hassles. This online platform provides insights about Investment planning, Mutual funds, Gold Investment, equity-linked savings, etc.
- ICICI Direct
ICICI Direct is offering trading and investment services to retail clients of ICICI Securities. This company offers services through an online platform as well as offline through a network of branches across India. This trading company offers various services including Mutual Funds, Derivatives, Equity, IPOs, Tax service, NRI service, Global Investment, Financial learning, etc. This helps in achieving the financial goal of the users.