People buy shares to make money. Generally, they buy when the price of the shares is low and sell them when the prices go high. The money people earn from shares depends on the company’s performance. The stock market or stock exchange is where people buy and sell shares and other financial equities. Investing in the stock market may appear risky, but people can make profits if it is approached in a disciplined manner. The share price of franchise cricket teams like the CSK share price keeps increasing year after year and attracts many investors.
A share price is the cost of a single share of the company. The share price is not fixed because it fluctuates according to the stock market condition. The share prices increase when the company is doing well and fall if the company’s performance is not satisfactory. The company’s initial public offering will fix the cost of one share according to the demand for the company’s stock. Later the share price varies and depends on various factors. A reduction in the need for the company’s shares, a change in the company’s senior leadership, or political events can bring down the share price. The share price reflects the company’s value; the price people are ready to pay to be a part of the company.
Types of shares
Equity shares or common shares allow people to have fractional ownership of the company, and they have a say in the organization’s management. The share cost is high, and their returns are not stable. Equity shareholders get the right to vote and select the company’s management. The company holds the equity share capital and returns it only when the company is closed. People who have high incomes and want to maintain a diverse portfolio buy common shares. The shares are transferable and volatile, but they offer greater returns.
Preferred shares are similar to equity shares and represent ownership in the company. When the company decides to distribute dividends, the preferred shareholders get it first. Preferred shareholders do not have voting rights. If the company becomes bankrupt, the preferred shareholders are paid from the company’s assets before the common shareholders. People who want to avoid risks buy preferred shares, and they can redeem them at any time.
Unlisted shares are securities that are not listed in the stock market. Investing in unlisted shares has a higher risk as there is no transparency and regulation. SEBI regulates the stock market, and the risk in investing in shares listed in the stock market is low because there is transparency in market pricing and disclosures. The returns from unlisted shares are huge when investment is made with care. The most significant drawback of unlisted shares is the lack of liquidity. It is difficult to buy or sell unlisted securities.
The investment bankers value unlisted securities like the CSK unlisted share price. There is no actual market price since they are not on the stock market, and people buy and sell unlisted shares through direct sellers and brokers.
Shares form an essential part of a person’s investment portfolio. If people need to diversify their financial portfolio, they can invest in stocks and enjoy the benefits. Many investors want to buy popular shares with attractive prices like the CSK share price. Investing in the stock market secures people’s futures and safeguards them from inflation. Shares are liquid assets that are easily converted to cash.