Stock Market-Basics

Stock market refers to the market where we buy and sell shares of a company in an exchange. Two types of market – Primary and Secondary market. Shareholders do not have rights to ask for refund as the amount is invested in company but they have rights to sell their shares in the secondary market. Dividends are a form of payment(Cash) that a company provides to its shareholders, usually out of its earnings whereas bonus is a free additional share given to shareholders. Its the companies decision to pay dividend to their shareholders. The main difference between Investment and Trading is the duration we hold the stocks. Investment is Long term and Trading is Short term. SENSEX(BSE 30-Top 30 companies) and NIFTY(NIFTY 50-Top 50 companies) are both indicators intended to represent an entire stock market and track the market movement over time.