Skip to main content

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.

Comments

Popular posts from this blog

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...

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.

Stock Market Gossip - Company Valuation Toolkit

According to many stock market expert, following tools are used to analyse a share or company fundamentally. This is not specific to any country or market, thi can be used globally in any market. CSE Gossips brings you this valuable information to you to pick a right share P/E Ratio The price earnings ratio (P/E) is the price of a share divided by its earnings per share (EPS). It is usually described as how many years of earnings are required to pay back the cost of buying a share, assuming no growth. Another way of looking at the P/E ratio is that it is the reciprocal of earnings yield, which is EPS divided by the share price. If a company has a P/E of 8, its earnings yield is 12.5% (100/8). If it pays out 40% of its earnings each year in dividends, then its dividend yield will be 5.0% (40% x 12.5). The P/E ratio is a ubiquitous measure of the rating of a share, and the simplest way of comparing two companies. But it is vital to ensure that you are comparing like with ...