Power of Equity

Power of Equity See how Rs. 10,000 turns to 265 cr You do any business, any service, any in life you are doing for money and our business, share market is directly money business. We are playing with money only. If you will go for any business, any service, if you will make mistake, you may say sorry, it may be rectified. But in our market if you will make any mistake, you have to pay by money/cash. So it is very important to learn about the share market. Now here you see power of equity. If you are not investing in the share market it means you’re losing a lot as your returns from equity may be much more than any other investment. Here is Power of equity. It is unbelievable but it has happened. It is a real example. Just imagine.. How much you can make in 36 years by just investing Rupees 10, 000, in any of the financial instruments. If you would have invested Rs. 10,000 in Dash Company. (I will tell the name of the company later) at that time in 1980 when company have issued the share at face value of Rs. 100 each. You received one hundred shares. Clear, you bought 100 shares @ rs 100 per share and invested rs. 10000. In 1981 company have declared a bonus of 1:1 I will clear it here :- Bonus means, if you are having 100 of the company, company will give you 100 more shares free of cost that is known as bonus. One into one means if you are having one they will give you 100 more. With that in 1981 your was owning 200 shares. In 1985 again bonus of 1 into 1. So now you are having 400 shares. In year 86 company has splited its share to 10 rupees. Previously the face value of the share was 100 rupees, now it will be 10 rupees but your no of shares will be.. Ten times.

Comments

1. Класно
2. This is good to see what has happened in past. But most important point is to identify company like Wipro. You need to explain why Wipro or Infosys gave such returns but not other companies. What could be next such companies to invest for say 20 years.