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Profit

There two major ways of getting profit from the Share Market. We can easily use this ways to earn money

1. Capital Gain

This are the mostly use method in share market to make the profit. We buy some share and when its increase we sell the shares and get the profit.

Ex:
Donald buy 1000 share from a company which price per share is Rs 10.
So he have to spend 1000 x 10 = 10,000 to get this lot. Then the share price will increase to 12. Then Donald can sell those shares 1000 x 12 = 12 000.
so his profit is 2000.


2. Dividend

In the above sample Donald hold his share until the XD Date(will discuss this later). and the company decide to pay .50 to per share as dividend.

so his profit is .50 x 1000 = 500

Note: Company management will decide to pay divdend and its a not must.

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