In order to buy a share listed on the NSE or BSE, one needs a stock broker. Brokers are of two types a) full service brokers b) discount brokers. When a person buys shares of a company, he or she also gets certain rights such as the right to earn dividends and also part-ownership of the company.
What are the charges for buying and selling shares?
Equity
| Zerodha charges | Equity delivery | Equity futures |
|---|---|---|
| Brokerage | Zero Brokerage | 0.03% or Rs. 20/executed order whichever is lower |
| STT/CTT | 0.1% on buy & sell | 0.01% on sell side |
| Transaction charges | NSE: 0.00345% BSE: 0.00345% | NSE: 0.002% |
| GST | 18% on (brokerage + transaction charges) | 18% on (brokerage + transaction charges) |
Is it legal to buy shares in the company you work for?
Unfortunately not, as employees are restricted from buying or selling shares in the company during a ‘close period,’ usually a month or two before financial results are released. It is highly unlikely employees can buy or sell shares during this time.
What kind of shares are in a company?
There are majorly two kinds of shares i.e. equity shares and preference shares. As per section 43 of the Companies Act 2013, the share capital of the company is of two types: Preferential shares are preferential in nature.
What happens when a company buys back its shares?
By buying back the shares company retains back the ownership and control over the company which otherwise would have been in the hands of shareholders. This acts as an exit route for the shareholders.
When do companies make their shares available to the public?
Companies have been coming out with Intial Public Offerings (which is when the company first makes its shares available to the public by getting them listed on the stock exchange). Everyone wants to join the party and make money. If you identify with her, here is a tutorial to help you get your basics right.
What makes you a shareholder of a company?
1. You own a part of the business When you invest in stocks, you do not invest in the market (despite what you think). You invest in the equity shares of a company. That makes you a shareholder; you now own a small part of that business without having to go to work there.
