Share market basics
A share of a company's profit paid out in cash to shareholders, usually per share, announced by the board and approved by shareholders.
A dividend is cash a company pays to its shareholders out of its profits, expressed per share. If SBI declares a dividend of ₹13.70 per share and you hold 100 shares, you receive ₹1,370 in your bank account. Companies are not required to pay dividends; many growth companies reinvest everything, while mature companies often pay regularly. Key dates matter: you must own the shares before the ex-dividend date to receive it, and on that date the share price usually drops by roughly the dividend amount, since that cash leaves the company. Dividends are taxed as income at your slab rate, and TDS may be deducted above a threshold. Dividend yield is dividend divided by price. A high yield can signal a stable payer or a company whose price has collapsed, so look at why. Dividends are one part of returns, not a reason alone to buy.
VideoA share is a portion of a company. The share market is where those portions change hands. Here is how it works, what you can trade in it, and why most people who trade actively lose money.
VideoThe share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.
VideoTrading comes in a few distinct forms, and the one you pick decides how much time, capital and stress it takes. This lesson explains intraday, swing, positional, futures and options trading with Indian examples.
