We will talk about one of the important topics in this article. This is “You should know about How to buy and sell Stock Shares”.
What is stock?
Stock refers to the partial ownership of a company, and shares are the unit of assets in a company. If you own stock in a company, you can have a lot of shares in that stock. Stock is an aggregate sum of the shares of a company.
Stocks are often referred to as stocks, and shares are often used interchangeably with stocks. If a company owns a stock (or shares), it acquires a portion of the company and becomes the company’s shareholder or stockholder.
Why do companies issue shares?
When a company issues its shares, it sells the parts of the company. Because a company is a valuable asset that will pay off in the long run, owning part of the company makes you a part of the company’s value. That’s why they pay for shares.
The shares are being issued to increase the company’s finances. Proceeds from the sale of shares are used to grow the business. Investors are also expected to pay dividends in the future. They are eager to invest money because they expect to gain long-term capital gains.
Why buy and sell shares?
Most of the time, you buy and sell stocks to make money. You can earn two kinds of income by trading stocks. Dividends: As a wholly-owned company, you have the right to receive dividends per share. When a company decides to give a profit to investors, it will return a profit on the stock.
Capital gains: If the company grows and makes more profit, the value of the company will increase. Then the shares of your company will increase in value. You could also start a new business by selling at a higher price than you actually bought.
Another reason stocks are traded is to gain control of the company. Because shareholders are part of the company, they have the right to vote on important company decisions. However, not all types of shares will be eligible to vote. There are different opportunities depending on the stock.
Buying stocks; What are the risks of selling?
There are pros and cons to investing in the stock market. Companies are not always profitable and will not always be valuable. Not all companies share profits on shares. Such distribution companies may choose not to pay in the future. If the value of the company does not increase, the value of its own shares will not increase.
Profit of a company Growth and business value depend on many factors. Poor management; Misfortunes can also devalue a company and cause political or legal changes. Other external factors that are not under the control of the company, such as infectious diseases, can also cause the company’s value to plummet.
In that case, owning a part of the company will not bring you any profit. In the worst-case, the company’s business will come to a complete standstill and its equity will be completely worthless.
What shares can be traded?
If the company, you want to invest in is a public tragedy trade on that listed company. In Myanmar, six companies are listed on the Yangon Stock Exchange. Shares of these six companies can be traded. If the company is public but not listed, it may be possible to trade with the help of securities companies.
It is more difficult to invest in shares of private companies. They have a limited number of shareholders and are usually undisclosed. If you want to invest in a private company, you will need to negotiate directly with the current owners (existing shareholders).
Choose a licensed stockbroker.
First, choose the stock agency you want to use. There are six securities companies in Myanmar that are licensed to provide brokerage services. You can compare stock companies here.
Open a securities trading account.
Once you have selected an agency, you will need to open a securities account. Usually, you need to go to that company in person to open a securities account. You can open a mortgage account for free. Registration You will need to provide documents such as bank account details.
You also need to have a bank account. Normally it must be the bank account of the bank affiliated with the securities company. Contact the securities company directly for details and procedures required to open an account.
Choose a licensed stockbroker.
First, choose the stock agency you want to use. There are six securities companies in Myanmar that are licensed to provide brokerage services. You can compare stock companies here.
Open a securities trading account.
Once you have selected an agency, you will need to open a securities account. Usually, you need to go to that company in person to open a securities account. You can open a mortgage account for free. Registration You will need to provide documents such as bank account details.
You also need to have a bank account. Contact the securities company directly for details and procedures required to open an account.
Top up your account
You also need to top up your account. This means that you need to deposit money into this account just like you would with a savings account. This list will also cover the various fees charged for trading. If you already have some shares in your hand, you can add these shares to your new bond if you wish.
Place an order to buy stock.
Now that you have a list of securities, you can trade stocks. Currently, there are 6 stocks available for purchase on YSX. Select the stock you want and place an order with your agent. Some agencies have an online shopping platform or mobile app that can be ordered.
About Share and Bonds
Public corporations sell shares or bonds when they need money for financing. There are two types of bonds: government bonds and corporate bonds. Investors who buy shares can reap the benefits of both (Dividend + Capital gain). If the company is profitable, the dividend and the capital gain resold on the secondary market, resulting in a two-fold increase in market price.
There are usually two types of share: ordinary share and preference share. An ordinary share is a simple regular share and the BOD determines the dividend distribution. There is no fixed amount of dividend.
