Share Prices in India

A share price is the value of a single or a number of shares or saleable stocks of a particular company. Once an investor has purchased the shares, he becomes a Share holder of that company that has issued the share.

The research analysts believe that the share price deviation results on the basis of seasonal and temporal patterns. It has been noted that the returns is significantly more then what it is in other months and on Mondays the share price is down more than on any other day.

These effects have been observed by the research people on the basis of these fluctuations.

The technical analysis to extract information based on future share price movements from historical data. As a result of such an unpredictable or behavior the huge amount of data available researchers for analysis causes the fluctuations.

The causes an element of unpredictability in the share prices, depending on what the market has achieved so far. When viwed over a long duration the stock prices are directly or indirectly related or the dividends to the earnings, and cause a fluctuation in the market value.

The desire of the investors has led into trading of shares. The stock exchange is the place, where buying/selling of the stocks take place.

A stock broker usually represents the stock trader, who buys the shares on his/her behalf. A company lists its shares on the BSE or NSE stock exchange by maintaining the listing requirements of the particular stock exchange.

In India, BSE and NSE hold the rights for all its investors.

Small companies that cannot qualify or cannot meet the listing requirements of the major exchanges can be traded over the counter using the off-exchange mechanism in which trading can take place directly between both the parties.

When an investor wants to buy shares, he purchases them via the stock broker. The brokers normally charge a fixed amount of commission over the prices. Another way to buy shares is by purchasing them directly from the company at the originally listed prices.

A direct public offering is an initial public offering in which the shares are directly purchased from the company without the aid of brokers.

The share prices are normally not affected when the stock broker buys the shares on the behest of the investor.

Selling stock is similar to buying it. Generally the investor will buy when the share prices are low and sell them when the share prices are high. Even while purchasing the broker has a certain fee depending on the type of brokerage services that he is offering to the investor.

The share prices play an important role in the profit or loss statement of the investor.  So, after any transactions, the seller is then entitled to all the money, but he must make sure to keep a regular track of his earnings.