Did you ever think of investing in stock market? Can you buy a single share? Yes, you can buy one share of stock in India. There isn’t any reason why you can’t do so. Let’s see how is it possible.
There is no reason why as we can’t invest in the stock market and buy a single share. There are different types of stocks that you can buy. Penny stocks are those that trade for 50 paisa, one rupee, and so on. However, blue-chip stocks trade anywhere from 10 rupees to 7000 rupees and more for a single share. Therefore, buying one share of stock in India is quite feasible, and there are no restrictions associated with this whatsoever.
What are shares of companies?
When talking about stock markets, the one thing that investors and traders buy/sell the most is stocks. Now, stocks are nothing but a medium through which companies raise money from the investors by giving a small share of ownership in their company known as ‘Equity.’
There are two types of stocks that a company issues. One is Equity shares and the other is Preference shares. Let’s understand the difference between them both.
1. Equity shares
Equity shares are the most common type of shares that a company issues. These shares are also known as ordinary shares as these do not have any preference when it comes to the repayment of capital. Common equity shares include voting rights, which means the holder of an equity share can record their vote in the decisions of the company.
2. Preference shares
As the name suggests, preference shares offer some additional preferences over other ordinary shares. Preference shareholders are given first preference at the time of repayment of capital. Once the preference shareholders are paid, the remaining capital is repaid to the ordinary shareholders. Preference shareholders are also given priority on the payment of dividends, whereas the rate of dividends is fixed. On the flipside, preference shares do not usually include voting rights in a company.
Can you Buy 1 share?
As an investor, you might have multiple questions like what is the minimum number of shares that has to be purchased in order to become a shareholder?
The answer to that question is ‘One’. In the Indian share market, you will have to purchase a minimum of 1 share of any company to become a shareholder of the business. For example, if you purchase 1 share of Nestle, then you will become a part-owner of the company.
Similarly, if you own a majority of the shares of any company, you can become the owner of the company. There is no upper limit on the number of shares that can be purchased.
Therefore, if you want to become a shareholder of a particular company, you can easily buy one single share of the company and still enjoy all the rights of a shareholder.
However, the amount required to purchase 1 share can differ from company to company. You can purchase 1 share of a company at as low as 1 Rupee. And at the same time, you might have to shell out close to Rs. 70,000 to obtain 1 stock of MRF, which is the most expensive stock in the Indian stock market. The bottom line is you can purchase a minimum of one share of any company in the Indian stock market and become a shareholder in the company, regardless of its price.
You can buy one share and you can buy one lakh shares in the stock market. No one is stopping you from doing so. But keep in mind that yo would have to pay a brokerage fee either while buying or selling. It’s all based on the stock broker you have chosen.
Yes, you can legally buy just 1 share of a company in India, and it is completely allowed. There is no minimum quantity requirement for buying shares on Indian stock exchanges like NSE and BSE—you can purchase even a single share as long as it is available at the market price and you have sufficient funds.
Thanks/
2 Likes