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POWER OF COMPOUNDING Made Simple - Even Your Kids Can Do It

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Albert Einstein  once said,  "Compounding is the 8th wonder of the world.  He who understands it, earns it; he who doesn't, pays it."         We all have read about compound interest in our school days, but do we have the knowledge, how it plays an important life in our life. With compounding, even common people can create wonder. If he/she applies it in the right direction or else it destroys anything in the same way. First, understand how it is playing an important role in our life. Case 1: If you put money in an asset that gives 10% (more than inflation), then you could make approximately seven times in 20 years. Case 2:   If you put money in a bank which gives 3.5% (which is less interest than inflation: 6%) then after 20 years the purchasing power will become approximately halved. So, whether you do anything or not, it is going to impact the capital. Now, you must be curious to know about it, So let's start with the definition and the f...
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demat account | where to open demat account | types of stock broker

what is a Demat account? It is an account that acts as a window through which you can buy and sell shares. * A Demat account holds securities like stocks, Mutual Funds, IPO shares, etc. in electronic form. It is similar to a bank account but instead of keeping money, it holds securities. For entering into the detail let us first understand the evolution of the Demat account. You have heard about the Bombay stock exchange which is the oldest stock market in Asia(I have already discussed what a stock market is all about) So, the BSE has the shares of any company in the form of paper in which you can see the name of the company, and the number of shares is written in it. photo of old shares This trend continues until 1995. why 1995? because the Indian market was open for all foreign nations for trade as well as investment in 1991 and the government was very dedicated to making the Indian stock market as competitive with the outside world. So, the government officials asked the BSE to leav...
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