Day 1 – Basics of Stock Market

The Securities and Exchange Board of India(SEBI) was established on 1988 by the Government of India.
Its main objective is to promote orderly and healthy growth of securities and to provide protection to the investors.
The main purpose of a stock market is to provide a structured and regulated exchange where investors can safely buy and sell shares of stock in a public corporation and where company owners can acquire equity investment.
SEBI’s main objective is to promote orderly and healthy growth of securities.
Primary market – investors buy directly from the issuing company.
Secondary market – investors trade securities among themselves. When a company goes public, it sells new stocks and bonds for the first time. Usually, that sale takes the form of an initial public offering.
Face value – The total capital divided by the total no of shares.
Dividend – A distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.
Bonus – Providing additional Shares to share holders with free of cost.
Split- A corporate action in which a company divides its existing shares into multiple shares
SENSEX and NIFTY are the indexes of the Bombay Stock Exchange and National Stock Exchange.
It is calculated on the performance of the top companies listed on that exchange.
SENSEX is performance of top 30 companies decided by BSE.
NIFTY is of top 50 companies decided by NSE