a stock market is a place where buyers and sellers of ownership certificates(shares) meet to do trading, and we need stock market because it facilitates the trading which is done in a common place thus saving time and expenses trying to find a suitable buyer/seller.
sebi is a government organisation set up specifically to over look the trading that takes place in the market and to solve any and all issues that might appear in the stock market.
a person who owns the shares of a company is called a share holder, a person who advertises a company to encourage buyers to invest in them is called a promoter and a director is the person who runs the company but isn’t necessarily the owner. a primary market is the place where the company issues shares for the 1st time for sale and investments are made, while the secondary market is the place previously bought shares are exchanged, a share holder has no right to demand refunds or dividends, it is entirely upto the company whether or not to give dividends. a face value is the value at which the share are issued for a sale at the beginning, dividends are the returns which are a part of the profit earned by the company and paid to the share holder with respect to the quantity of shares owned by the share holder. when a company makes surplus profit it rewards its share holders with a bonus, which is usually in the form of shares. there are 2 centers for stock exchange nifty and sensex, nifty is the average earnings of top 50 performing companies and sensex is a collection of top 30. nifty is more well known than sensex because it offers a relatively more detailed insight of the market.

1 Comment
  1. vignesh 6 years ago

    Hi sir,
    your answers are brief and appropriate, will be useful to recall.

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