Tradebulls

Tradebulls Online Share Trading

Blog

5 Benefits of buying ordinary shares with your demat account

Demat Account | September 29

In the investment space, there are several securities that you can trade at the stock exchange. When you open a demat account as a new investor in the securities market, you may come across different types of shares. ‘Ordinary Shares’, ‘Common Shares’, ‘Equity Shares’ or ‘Common stocks’ are the shares that are generally purchased in bulk in the equity markets by demat account holders for share trading. 

Demat account holders who purchase ordinary shares gain a percentage of ownership in the company. For example, Say the company has 10 common shares. If you buy 5 shares, you receive 50% of shareholder ownership in that company. Ordinary shares can be shares of publicly-held companies or private companies.

With the help of a demat account opened with a trusted service provider such as Tradebulls, you can buy, sell or hold common shares of listed companies in the Indian stock exchanges. ‘Preferential shares’ and ‘Differential Voting Rights’ (DVR) are other types of shares that exist in India. Ordinary shares offer much more than profitable sales. 

Let’s explore how demat account holders can increase their earnings with ordinary shares.

5 benefits of ordinary shares

  1. 1.Dividends

If you have purchased ordinary shares of a company, you are entitled to small dividends when the company makes profit. Sometimes, demat account holders with common shares earn very good dividends when the company performs well.


  1. 2.Voting rights

As a shareholder of the company, you have the right to one vote in company matters as per the shareholding policies. You can use this right for voting at the company’s annual general meeting.


  1. 3.Profit on sales

Ordinary shares are purchased in bulk by investors and stored in the demat account. Based on the growth of the company you invest in, you can sell these shares from your demat account at a better rate, at the right time.


  1. 4.Equity Capital

The equity capital gathered by the company doesn’t go back to the investors. But when the company winds up, the equity share holders get some returns from the equity capital. These returns can be claimed after the company has settled its obligations and paid the preference shareholders.

Also, in case the company’s share price drops, it can go as much as zero. This means that you will only lose what you spent on the shares, and nothing more than that.


  1. 5.No maturity date

Ordinary shares do not a have maturity date. You can buy and keep the shares for long-term investment returns. You can also buy these shares and pass it on to your family members, when you grow old or whenever you wish to do so.


To learn more about ordinary shares, visit this Investopedia page: 

http://www.investopedia.com/video/play/ordinary-shares/

Although ordinary shares have their own set of benefits, preference shares and DVR are more valuable than ordinary shares. Many demat account owners have taken calculated risks and benefited with investment in ordinary shares. Why don’t you explore investing in ordinary shares too?

Begin your online share trading journey by opening a demat account with Tradebulls, a leading equity broker based in India. To learn more about trading in the equity markets, visit https://www.tradebulls.in/equity-and-derivatives

Still need more information on ordinary shares? Post your question in comments.

COMMENTS
No Comments Found
leave your comment

ABOUT THE BLOGGERS

Dinesh ThakkarChairman & Managing Director

Dinesh Thakkar is the Founder & Chairman of Tradebulls Group, one of the fastest growing Indian stock broking house. Mr. Thakkar has over 20 years of rich experience in the Capital & Commodity Market.

View Full Profile

OUR EXPERT BLOGGERS

636202619765216833_Dinesh_Thakkar_front_Face_100_px_x_100_px.pngDinesh ThakkarChairman & Managing Director
636202618488664609_Aasif_Hirani_front_Face_100_px_x_100_px.pngAasif HiraniDirector Tradebulls
636202618640303853_Dhruv_Desai_front_Face_100_px_x_100_px.pngDhruv DesaiDirector Tradebulls

Categories

Equity14Mutual Fund2Commodity6IPO1Demat Account8Forex1
Open your Demat and Trading Account with Tradebulls

Start Trading in Equity, Commodities and Currency Today!

Submit
  • attention investors
"Prevent Unauthorized transactions in your Trading/Demat Account --> Update your mobile numbers/email IDs with your stock brokers/Depository Participant. Receive alerts/information of your transaction/all debit and other important transactions in your Trading/ Demat Account directly from Exchange/CDSL at the end of the day .......... Issued in the interest of investors." | "KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary." | "No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account." |"Investment in Securities Market/Commodity Market is subject to Market Risk. | RGESS investors kindly download New Retail Investor Certificate from link - https://www.cdslindia.com/investors/rgessverification.aspx | Dear Investor kindly update Aadhar Number with your demat account, contact your nearest branch."
TRADEBULLS SECURITIES PRIVATE LIMITED
SEBI Registration No : INZ000171838| NSE Member Id-13499| BSE Member ID-3286 | MSEI Member ID-77100 | CDSL Registration No: IN-DP-206-2016 | PMS Reg. No.:INP000005463 | Research Analyst No. INH000004486 | AMFI Reg. No.: ARN-82359 | CIN: U93000DD2009PTC004753
TRADEBULLS COMMODITIES BROKING PRIVATE LIMITED
SEBI Registration No : INZ000079832 | MCX Member ID - 21840 | NCDEX Member ID - 00376 | CIN: U51909DD2004PTC004752
Authorization : Please note that by submitting the above mentioned details, you are authorising us to call & email you even though you may be registered under DNC
Customer Support/ Grievance / Correspondence Office Ahmedabad: Tradebulls House, Sindhubhavan Road, Bodakdev, Ahmedabad, India -380054
Telephone No: +91-079-40001000,+91-079-33333333  | Email: wecare@tradebulls.in
Copyright © 2018 Tradebulls.in
Designed, Developed & Content Powered by   Accord Fintech Pvt. Ltd.