The stock market is the right place for those who know the movement of prices and trend that can help them carry out some trades and fetch profit from the trading activities. In the market there are many companies which have got listed on various exchanges and the traders can trade in their shares as per their knowledge and information available from various sources. You are able to come across a number of securities within the investment space that may be traded on the stock exchange. As you happen to operate a demat account in the capacity of a startup within the market of securities, you shall come upon various kinds of shares such as common shares, equity shares, ordinary shares can be said to be the shares usually bought in bulk within the markets of equity by holders of the demat account required for trading shares.
Holders of the demat account normally buy ordinary shares and obtain some percentage of ownership within that company. For instance, suppose any company has got ten common shares. In case you come about to purchase five shares, it is obvious you get fifty percent of shareholder ownership in the particular company. Ordinary shares pertain to the shares of any publicly held company or any of the private companies.
If you happen to open the demat account with any of the reliable service providers, you are able to sell, purchase or you can retain common shares within the stock exchanges in India of the listed companies. DVR- differential voting rights and also preferential share make various other kinds of shares that can be found in India. It is a fact that ordinary shares have too much to offer in comparison to profitable sales. So go for a demat account in India at the earliest. Below are given ways by which holders of demat account are able to enhance their returns through the ordinary shares.
Advantages of Ordinary Shares
In case you come about to buy ordinary shares of any company, you will surely get small dividends whenever the particular company gets profits. At times holders of the demat account having common shares are able to get better dividends as the company does satisfactorily well.
Being a shareholder in any company, you enjoy the right to alone vote in the matters of the company according to the policies of the shareholding. You are able to bring in use the right to vote in the annual meeting of the company.
Profit on sales
Ordinary shares tend to be bought by the investors in bulk and stacked within the demat account. Depending upon the growth of that company you put money in, it is possible for you to sell shares found within the demat account on the best rates at a proper time.
This equity capital collected by any company will not be given to the investors, but instead, the equity shareholders shall be given some returns when the company closes down.