What is the basic necessity of having a stock market?
If you own one company.you started company with the help of your own money,your parents money,or your relatives money. Now situation is that now you require the growth of the company. But situation is that you haven't money yet because your money you invested to growth your business. So you have now two ways to growth your business.
Now,If you try second way which gones through public.you issue some shares.and issue initial public offering (IPO). So I know that you choose always second way but there are so many rules from sebi says Security and exchange board of India. It's declared some rules for company who issue IPO. So if you are successfully registered your company after then you issue IPO. Now assume that your company total value is around RS.1000 and you want to issue 100 shares so the price of the shares is 10 rs per share.The basic definition of share is share your business partnership to the public. So if you give all your shares to the public so in this case you have not own your business !! So you own more than 50%shares. And less of them it will distribute to the public (shareholders).
Now come back to the main point that advantage to issue some shares to public is that when shareholders all of your share that you have now 1000rs. And now you can invest on your own business without any interest.
So we conclude that stock market is the right way to grow your business. And you never returned 1000rs. to the public but public can buy or sell stocks to another shareholders. And the price of the shares is depends on your profit, loss, numbers of buyers and numbers of sellers.
So only stock market is the profitable way to grow up your business. So now you can easily understand that why stock market is stands.
Thanks,
- Take a big amount of loan from bank.
- Sell your partnership to public in form of stocks.
Now,If you try second way which gones through public.you issue some shares.and issue initial public offering (IPO). So I know that you choose always second way but there are so many rules from sebi says Security and exchange board of India. It's declared some rules for company who issue IPO. So if you are successfully registered your company after then you issue IPO. Now assume that your company total value is around RS.1000 and you want to issue 100 shares so the price of the shares is 10 rs per share.The basic definition of share is share your business partnership to the public. So if you give all your shares to the public so in this case you have not own your business !! So you own more than 50%shares. And less of them it will distribute to the public (shareholders).
Now come back to the main point that advantage to issue some shares to public is that when shareholders all of your share that you have now 1000rs. And now you can invest on your own business without any interest.
So we conclude that stock market is the right way to grow your business. And you never returned 1000rs. to the public but public can buy or sell stocks to another shareholders. And the price of the shares is depends on your profit, loss, numbers of buyers and numbers of sellers.
So only stock market is the profitable way to grow up your business. So now you can easily understand that why stock market is stands.
Thanks,
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