What is a Stock Exchange?

A stock exchange provide shares buying and selling debentures of companies. People can buy or sell share as they need and get profit from it.

Share :

Share is a unit which messieurs the capital of a company.Share price will decide by the company director board and it is subject to going up or down because of several reason.

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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.

What is a XD date

As I said earlier you can get an idea about what is XD Date. A stock trades ex-dividend on or after the ex-dividend date (ex-date). At this point, the person who owns the security on the ex-dividend date will be awarded the payment, regardless of who currently holds the stock. After the ex-date has been declared, the stock will usually drop in price by the amount of the expected dividend.

Share market for Beginners

What is the Colombo Stock Exchange (CSE)? The Colombo Stock Exchange (CSE) is the organization responsible for the operation of the stock market in Sri Lanka. The CSE is a company limited by guarantee duly established in Sri Lanka and licensed by the Securities and Exchange Commission of Sri Lanka (SEC) to operate as a stock exchange in Sri Lanka. How do I purchase shares? There are two ways to purchase shares From a new issue of shares (Primary Market) - The primary market is the market for new shares or debenture issues. In the primary market, the security is purchased directly from the issuer (company). In a primary issue, the company offering the share/debenture issue publishes a document known as the prospectus. It is an invitation to the generalpublic to buy shares or debentures of that company. On the Secondary Market through a stock broker - A market in which an investor could either buy or sell shares, debentures and Government Securities from or to another invest...

Stock Market / Forex Gossip

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