A common question among new investors regarding the stock market is: why do some investors say they have lost a huge sum of money while investing, while others have garnered immense wealth by investing in stocks?
If you invest or trade in the stock markets, you may have come across the term ‘penny stocks’. Penny stocks are those that are traded at very low prices – below Rs. 10 in India and traded less than $5 in the US markets.
Before investing in the stock market, it is essential to know the basics. When you purchase shares, they are transferred to your Demat account within the specified settlement period.
nvestors who enter the stock market always do so in hopes of making money. Some investors who prefer short term trading find growth stocks that may be volatile. Only through volatile stocks that show considerable price movement can such investors make huge profits.
A stock can rally in just a matter of days. One day it may rise by 5 points and the next day by 50. Amateur investors, who do not have extensive knowledge about the financial market, invest by monitoring a stock for some days and entering when it starts rallying.
Imagine you founded a company, worked hard for years to make it successful. Until you take your company public, you have all the control in the organisation, where every decision you take is always towards taking your company to new heights.
The interest accrued on a savings account is never enough to help you multiply your wealth and achieve financial freedom. Investors such as Rakesh Jhunjhunwala started with just Rs 5,000 and went on to become a billionaire by investing in various financial instruments available in the market.
Private companies go public after issuing an IPO. In general, public offerings are a combination of new issues and offer-for-sale, which essentially means a sale of shares by existing promoters or shareholders.