If a person has a company and if it gives profit or loss all goes
a single person . If two people run company in partnership and the profit and loss are shared by two persons. If a company needs ten million for its expansion and its growth, but it doesn’t had enough
money then they will get the money from public by selling
one million shares to the public, each with a value of 10.
Now the face value of the company is 10. Now there are
more people to share the company’s profit and loss. One
person can have more than one share. And the shares can
be sold in the open market.

If the company is doing well then more peoples
will try to buy that company’s share and very less people
will try to sell the share, so the share value of the
company will increase. Who ever is holding the share gets
profit. If the company is not doing well then more people
will try to sell the shares and only very less people
will try to buy the shares, so the share value of the
company will decrease.

Intraday trading is buying the share
when its down and selling share after it goes up on the
same day. Short selling is selling share with high value
and buying it back after it goes down on the same day.
To buy a company’s share you need a trading
account. Trading account holds the shares and the money
used for trading. You have to transfer money from bank
account to your trading account and from where you can
buy shares. After selling the shares money goes back to
the trading account. You can’t withdraw money directly
from trading account. For that you have to transfer
money from trading account to your bank account and then
you can withdraw money from bank account.