Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater.
Another extremely important feature of stock is its limited liability. This is a legal term, which means that you are not be personally liable in the case of the company not being able to pay its debts.
The Act defines Depository as, An organization where the securities of a shareholder are held in the form of electronic accounts in the same way as a bank holds money. The Depository holds electronic custody of securities and also arranges for transfer of ownership of securities on the settlement dates.
As you probably know, mutual funds have become extremely popular over the last 20 years. What was once just another obscure financial instrument is now a part of our daily lives. In fact, to many people, investing means buying mutual funds. After all, it's common knowledge that investing in mutual funds is (or at least should be) better than simply letting your cash waste away in a savings account.
Indian Economy-High Growth Rates, Low Inflation and Soaring Foreign Investments. India has had robust economic growth since 1991 when the government reversed its socialist-inspired policy of a large public sector with extensive controls on the private sector and began to liberalize the economy. India is now placed among the mature markets of the world.
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Buying on margin is borrowing money from a broker to purchase stock. Margin trading allows you to buy more stock than you'd be able to normally. To trade on margin, you need a margin account. This is different from a regular cash account in which you trade just with the money in the account. An initial investment is required for a margin account. This deposit is known as the minimum margin. Once the account is opened and operational, you can borrow money to purchase a stock. You can keep your loan as long as you want, provided you fulfill a few criteria. First, when you sell the stock in a margin account, the proceeds go to your broker against the repayment of the loan, until it is fully paid. Second, there is also a restriction called the maintenance margin, which is the minimum account balance you must maintain. If you do fall below this level, you will be forced to deposit more funds or sell stock to pay down your loan. This is known as a "margin call". Borrowing money isn't without its costs. On top of the fact that the margin-able securities in the account are collateral, you'll also have to pay interest on your loan.