How to invest in share market? what does mean by face value of a share?

I want to invest in a share market. I am just a beginner. I would like to know more about the share market. Please tell me how to invest? where to buy the shares?

if you have enough money to loss you go.

Face value is the value of a coin or paper money, as printed on the coin or bill itself by the minting authority. While the face value usually refers to the true value of the coin or bill in question (as with circulation coins) it can sometimes be largely symbolic, as is often the case with bullion coins. For example, a one troy ounce (31 g) American Gold Eagle bullion coin is worth and sells for about $670 USD at current market prices (as of July 17 2006) and yet has a face value of only $50 USD.

The face value of bonds usually represents the principal or redemption value. Interest payments are expressed as a percentage of face value. Before maturity, the actual value of a bond may be greater or less than face value, depending on the interest rate payable and the perceived risk of default. As bonds approach maturity, actual value approaches face value.

In the case of stock certificates, face value is the par value of the stock. In the case of common stock, par value is largely symbolic. In the case of preferred stock, dividends may be expressed as a percentage of par value.

The face value of a life insurance policy is the death benefit. In the case of so-called "double indemnity" life insurance policies, the beneficiary receives double the face value in case of accidental death.

The face value of property, casualty or health insurance policies is the maximum amount payable, as stated on the policy's face or declarations page.

Face value can be used to refer to the apparent value of something other than a financial instrument, such as a concept or plan. In this context, "face value" refers to the apparent merits of the idea, before the concept or plan has been tested.

Taking someone at face value is assuming another person's suggestion, offer, or proposal is sincere, rather than a bargaining ploy. As an example, a professional athlete may demand of team management, "Play me or trade me." In many cases, the athlete simply feels unappreciated, and small signs of appreciation, ranging from praise to a modest raise, will make him happy again. If the team management takes his demand at face value, they believe that the player truly wants to spend less time on the bench, and if they aren't in a position to use him more, they may trade him to a team that can.

Investing in shares

Public companies issue shares, which allow investors to buy a part of a particular company. Share ownership entitles you to part of the company profits if dividends are paid.

Shares may be classified in a range from conservative to speculative. Blue chip is often used to describe the highest quality shares as they are shares in companies with a proven track record, producing profits in good times and bad. They usually set the level of the market. Rememberâ€“all shares are affected by share market fluctuations. Individual share prices also vary based on supply and demand from sellers and buyers.

Information about shares listed on the stock exchange is printed in the larger daily newspapers. Mining and resource companies are listed in the 'Mining and Oil' section. All other companies are listed in the 'Industrials' section.

You can buy and sell shares listed on a stock exchange through a stockbroker.

When you buy a parcel of shares, you receive a CHESS statement of holdings from the company, showing the number of shares you own and the date you bought them.

As a shareholder you have a say in the company's future through voting rights. You will be kept informed about the company through its annual report and other correspondence.

As suggested, by ACE, start with mutual funds and daily follow the movement of the shares, to gain knowledge. Face value is basic share value which is generally Rs.10/- or Rs.100/-, in India. Usually, it is the value, the share is initially issued into the market. Then market decides the value, on the basis, of the Company's performance.

Investments in stock market can be both direct and indirect.If you invest in mutual funds,which in turn invest in the stocks, is indirect investment.

On the other hand, if you want to buy and sell shares on your own, you have to register with any SEBI registered broker.You will need a PAN card also, which is made mandatory for all investments and opening a demat account.Find out the brokerage which is nearer to you.You need a savings bank account with cheque book facility also.

Demat account for shares is like savings account for your currency.Your holdings are held in digital form.Whenever you sell, you need to issue a delivery instruction slip which wil be provided by your depository participant.Shares bought will directly go to your demat account if you open a demat account with the broking house through which you want to invest.

Face value as said by the other answerers is largely symbolic.It can be any of the following:1,2,3,5,10,50 or 100.Some companies declare dividends as a percentage of face value, some others declare in rupees per share.EPS is also based on face value.A company earning 2 rupees per share of 1 rupee face value is same as one earning 20 rupees on a share of 10 paid.

Face value of the share is basic value of a share. It is the value in which share is initially issue to the public. The value of share is decided by the market on the basis of companies perfomance.

Before making investment in the share market, your fund should be availale freely for this purpose. This means that make an investment in the share market in the long run and don not play in the market. Market is alluring and you have been habited to visit the market.There are number of factors from which it can be decided that in which share one should make an investment. Every share is not for every one. For investment share differ from one man to another. Hence take decision very wisely before making an investment. If you want to make further any quarry and you have any doubt in your mind regarding the market you can freely contact nfc20006@yahoo.com

Dude ,
If Ur a beginner then better start with Mutual Funds then step into the market , usual the markets trades on speculation if Ur caught on the wrong side then never will come back to the markets .
No mercy dude U would have lost ur capital in no time .

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