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Introduction to shares

Shares are given by companies as part of their ownership. The ownership will be divided into many parts and a part will be said as a share. For example, If you buy a share in a company which has given out 1 Lakh shares, you are the owner of 1/1 Lakh of that company. If you are new to share market, you would have seen many giving recommendations in TV and also from your friends and many other websites. These are just recommendations. Just think this way, If they know the price before, they can easily make large amount of money in the market. Always believe in you and make decision for yourself or blame yourself. Don't ever try to simulate others. Try to do your own research before investing. How can I get a share of a company? You can get a share of the company, when it releases IPO (Initial Public Offering) or directly in the secondary market.

Begin Investing

There are various ways to get money and equally more ways to spend it. The question, most of them ask, is "Where to put in my extra money to get higher returns?" This involves many factors like, 1. How much time you are going to remain invested? - Time span. 2. How much risk you are willing to take? - Risk 3. How often and when do you need money? - Liquidity The banks give interest for the money you have saved with them in SB account. Surely, I will not call this as investment. You may have wondered, how come they are able to give some more money as interest. This is the time factor that comes to play here. The thing you buy today at Rs. 100/- will not be the same after, say, 10 years. For example, The price of Gold before 20 years would be very less compared to what it is today. This is due to inflation. Inflation rate is the rise of prices in every year. It is something between 4-8% in India. Now, it is almost 6%. So, What does this mean? If you are saving in a bank, the re...