The share market It is a place where shares of pubic listed companies are traded. It is the meeting place of the stock buyers and sellers. The primary purpose of a stock market is to regulate the exchange of stocks, as well as other financial assets. Such regulation ensures a fair environment for not only investors, but also the corporations whose stocks are traded in the market.
Securities and Exchange Board of India (SEBI) is a statutory regulatory body entrusted with the responsibility to regulate the Indian capital markets. It monitors and regulates the securities market and protects the interests of the investors by enforcing certain rules and regulations
Primary Market” refers to the initial offering of stocks or bonds to the buying public, as when a previously privately-owned company decides to “go public” by issuing shares of its ownership, or stock, to the public. The “Secondary Market,” then, refers to the subsequent sell or transfer of stocks and bonds throughout the broader public marketplace through designated exchanges, most prominently, BSE (formerly Bombay Stock Exchange) and NSE India (National Stock Exchange of India Ltd) The stocks bought and sold through these exchanges are no longer in the ‘hands’ of the original issuing companies, but, rather, are sold from public hands to public hands.
Good understanding of what is Face Value, Dividend, Bonus, Split, Sensex and Nifty.
- : It is a place where shares of pubic listed companies are traded. It is the meeting place of the stock buyers and sellers. The primary purpose of a stock market is to regulate the exchange of stocks, as well as other financial assets. Such regulation ensures a fair environment for not only investors, but also the corporations whose stocks are traded in the market.
- : The stock market represents the companies that list equity shares for public investors to buy and sell. Stock exchanges are the infrastructure that facilitate the trading of those equity securities, or stocks. Without a stock exchange, companies would have no formal mechanism on which to list shares, and without a stock market, exchanges would have no reason to exist. Stock exchanges can be electronic or manual, and they provide telling information about the size of the stock market.
- : Comparing the Vegetable Market and Stock technically both are doing identical jobs, like forming an identity and a medium to meet buyers and sellers under one roof. However the stock market represents the companies that list equity shares for public investors to buy and sell Market has additional responsibilities as it is governed by bodies / governing bodies like SEBI and its who monitors whether both the parties are fulfilling their obligation.
- : Securities and Exchange Board of India (SEBI) is a statutory regulatory body entrusted with the responsibility to regulate the Indian capital markets The various functions of SEBI are: To protect the interests of investors in securities market To promote the development of securities market To regulate the business in stock exchanges and any other securities markets To register and regulate the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner To register and regulate the working of the depositories, participants, custodians of securities, foreign institutional investors, credit rating agencies To register and regulate the working of venture capital funds and collective investment schemes including mutual funds To promote and regulate self-regulatory organizations To prohibit fraudulent and unfair trade practices relating to securities markets To promote investors ‘education and training of intermediaries of securities markets To prohibit insider trading in securities To regulate substantial acquisition of shares and take over of companies To conducting research for efficient working and development of securities market
- : Share holder: Share holder is one who own a portion of the company's shares. He is the owner of the company. Promoters: Promoter is one who promotes the business and helps in raising funds through IPO etc.. Directors: Director is one who runs the company.
- : Primary Market" refers to the initial offering of stocks or bonds to the buying public, as when a previously privately-owned company decides to "go public" by issuing shares of its ownership, or stock, to the public. In the case of Initial Public Offerings, or IPOs, the stock is sold to the public for the first time, and any subsequent transfer of that stock constitutes what is known as the "secondary market." The "Secondary Market," then, refers to the subsequent sell or transfer of stocks and bonds throughout the broader public marketplace through designated exchanges, most prominently, BSE (formerly Bombay Stock Exchange) and NSE India (National Stock Exchange of India Ltd) The stocks bought and sold through these exchanges are no longer in the 'hands' of the original issuing companies, but, rather, are sold from public hands to public hands.
- : The Initial Public Offering IPO Process is where a previously unlisted company sells new or existing securities and offers them to the public for the first time. Prior to an IPO, a company is considered to be private – with a smaller number of shareholders, limited to accredited investors (like angel investors/venture capitalists and high net worth individuals) and/or early investors (for instance, the founder, family, and friends). After an IPO, the issuing company becomes a publicly listed company on a recognized stock exchange. Thus, an IPO is also commonly known as “going public”. Symbol NREF Company NEXPOINT REAL ESTATE FINANCE, INC. Price 19.00-21.00 Shares 5,000,000 Expected IPO Date 02/07/2020
- : Once the Share is purchased the Share holder becomes a part of the owner of the company, however he do not have any rights to ask for refund or dividends from the company. If he want to monetize he can sell the shares in the secondary market. ... No, Share holder do not have the rights to ask for refund and dividend.
- : There is a huge difference between investing and trading. Investing entails building wealth gradually over an extended period of time through the buying and holding of stocks. Trading, on the other hand, involves more frequent buying and selling of stocks, with the goal of generating faster returns. When investing, the investment is often held for a period of time in contrast to trading, which is frequent and, many a times, multiple times during the day. Impact: For small, retail investors, investing over a period of time is more suitable than trading, because trading involves a near constant monitoring of the stocks in which one is trading.
- : Face value is a financial term used to describe the nominal or rupee value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the holder at maturity, which is customarily rupees 1,000. The face value for bonds is often referred to as "par value" or simply "par." A dividend is defined as a payment made by a corporation to its shareholders. Usually these pay-outs are made in cash (called “cash dividends”), but sometimes companies will also distribute stock dividends, whereby additional stock shares are distributed to shareholders. Stock dividends are also known as stock splits. Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are company's accumulated earnings which are not given out in the form of dividends, but are converted into free shares. A stock split is a decision by a company's board of directors to increase the number of shares that are outstanding by issuing more shares to current shareholders. The primary motive is to make shares seem more affordable to small investors even though the underlying value of the company has not changed. Stock splits do not affect short sellers in a material way.
- : SENSEX is a index/benchmark used to measure the performance of top 30 companies listed in BSE(Bombay stock exchange). If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down it means prices have gone down. They are the two most important pillars of indian stock trading. ... NSE stands for national stock exchange and Nifty is the major stock index introduced by the NSE. The word Nifty originates from 2 words, `National' and 'Fifty'. Nifty basically means the index of the 50 most actively traded stocks from across all sectors.
- : NSE, despite having very few stocks listed as compared to gigantic BSE list, provides more liquidity for its stocks. This high liquidity is a plus point of NSE. NSE stocks provide more liquidity than BSE, thus a better choice for investors. he main difference between BSE and NSE is that the trading volume of individual stocks in NSE is much higher than in BSE. The NSE is a better choice for those who want to do 'Day Trading' and risk doing Share Trading with Derivatives, Futures and Options.