Stock Market is like every other market in the world but the one difference is the product which is shares of a company, we need stock market so that we can get a place to get back the money we invested in the company by transferring or selling the shares to others.Primary Market-is where stocks/shares are directly bought from the company eg: IPOs
Secondary Markets- are the Capital markers and stock exchanges where the stocks are re-bought and re-sold ,
Initial Public Offer(IPO) is when a company wants to raise money from the public by issuing shares of their company to the general public. A company applying for an IPO must comply with the guidelines of SEBI and The Companies Act to go public
Face value- is the value of the share decided by the company/ the value for which the company wants to sell the share
Dividend- is the share of profit given to the share holder by the company
Bonus and Split- issuing excess amount of shares/splitting the shares of the existing share holders in order to increase the volume of shares and decrease the Face value. These terms are not that relevant to traders compared to investors.
Two major stock markets in India are NSE and BSE, even though BSE was started much before NSE , NSE is more popular because of the transparency and introduction of new technologies and instruments like Derivatives, moreover the norms for getting listed in NSE is more stricter than that of BSE which ensures the quality and transparency .
SENSEX and NIFTY are indexes of top performing companies in BSE and NSE respectively , they reflect the overall performance in each of the markets, They are calculated by taking into account the daily and weekly averages.
