An overview of stock market for the beginners

Learn the difference between trading and investment before going to stock market. The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of stocks, baskets of stocks, mutual funds, bonds and other investment instruments.Trading, on the other hand, involves the more frequent buying and selling of stock, commodities, currency pairs or other instruments, with the goal of generating returns that outperform buy-and-hold investing.
The basic necessity of trading and investment is stock market. Stock market is a place where the shares of public companies are traded. A stock can be sold or bought only if it is listed in the stock exchange. Through stock market a company can increase the capital by issuing shares. When a company issue shares for the first time it is termed as Initial Public Offer (IPO).
A person who buy the shares of company is called a shareholder or partial owner of the company. A shareholders have to the right vote and also transfer the ownership of his/her shares but do no have to rights to claim refund or dividend for the shares.
In order to smoothly run the stock exchange there is need to be a strong hand, so there exists SEBI. Securities exchange board of India established in 1988. Its purpose is to alleviate the financial market of India through fascinating foreign investors and also protecting Indian investors.The main objective of SEBI is regulate the activities of Stock exchange and also to protect the right of the investors, ensuring safety environment. To understand the performance of the companies NIFTY and SENSEX are created.