When stocks are bought and sold, it’s called trading. So when you hear that Infosys is trading at 1870, it means if you buy one share of Infosys you will have to pay Rs1870,if you buy two shares then 2x1870, if ten share then 10x1870 and so on!
A Re 1 move in stock price is called a point. If Infosys goes from 1870 to 1871, you’d say that it rose to 1 point. Many investors purchase shares in blocks of 100. A block of shares is called a round lot. Round lot provide a convenient way to tackle your stock investments, because every round lot you own, 1 point move up and down adds or subtracts Rs 100 from the value of your investment.
For example, if you own 100 stocks of Infosys that means 100xRs 1870=Rs 187000. Suppose it rises 1 point then value of your hundred shares of Infosys will get added by Rs100, thus your investment will be Rs 187000+Rs 100. Also if it goes 1 point down then your investment value will be Rs 187000-Rs 100, thus your investment will decrease by Rs 100!
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