Share premium the difference between the shares

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Unformatted text preview: g of the company. Share Premium The difference between the share's nominal value and its sale price. It is the amount in excess of the face value of a share charged by a company on its share issue. TOP CAREERS & YOU www.tcyonline.com/topedge topedge@tcyonline.com +91-161-460-908,461-364 TCYONLINE WE COACH THE NATION Stock Stock means representation of ownership in a company. Stock, share, security and equity, scrip mean the same. Stock exchange Stock exchange is an organized marketplace for buying and selling listed securities. Stock exchange is also known as bourse. Stock index Stock index is a measurement of the trend of share prices. The BSE, NSE NASDAQ are the three most widely quoted market indexes. Stock split When a company splits its stock, it means that it will issue additional shares to the existing investors by reducing the face value of a stock. Stock trading Buying and selling of stocks is called as stock trading. Stockbroker A member of the stock exchange who is licensed to buy or sell shares on his own or on his client's behalf. He charges a commission brokerage on the deals. Undervalued shares Shares that are traded below their book value or the price-earning ratio. Yield Yield is the return earned by the investor or shareholder on his investment. TOP CAREERS & YOU www.tcyonline.com/topedge topedge@tcyonline.com +91-161-460-908,461-364...
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This note was uploaded on 07/20/2012 for the course ECON 203 taught by Professor Girishdev during the Spring '12 term at Indian Institute of Technology, Kharagpur.

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