Saturday, April 5, 2008

Share Market

A common platform where buyers and sellers come together to transact in stocks and shares. It may be a physical entity where brokers trade on a physical trading floor via an "open outcry" system or a virtual environment. share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market. Share broker play an important role in the share marketing

How public issue works?
Most companies that go public have been around for at least a little while. Going public gives the company an opportunity for a potentially huge capital infusion, since millions of investors can now easily purchase shares. It also exposes the corporation to stricter regulatory control by government regulators.
When a corporation decides to go public, after filing the necessary paperwork with the government and with the exchange it has chosen, it makes an initial public offering (IPO). The company will decide how many shares to issue on the public market and the price it wants to sell them for. When all the shares in the IPO are sold, the company can use the proceeds to invest in the business
Stock broker is a person or a firm that trades on its clients behalf, you tell them what you want to invest in and they will issue the buy or sell order. Some stock brokers also give out financial advice that you a charged for.

  • Full Service Broker - A full-service broker can provide a bunch of services such as investment research advice, tax planning and retirement planning.

  • Discount Broker – A discount broker let’s you buy and sell stocks at a low rate but doesn’t provide any investment advice.

  • Direct-Access Broker- A direct access broker lets you trade directly with the electronic communication