My day 1 knowledge gained in this session about stock market is quite satisfying . Here in this session I came to know about the basic phenomenon of stock market.
The need for stock market is known at this session.Though this session the basic fundamentals of stock such as the SENSEX NIFTY ,who are the major persons involved in the stock market and the purpose of it is been evolved.
The whereabouts of how the stock is been sold and in what form or ratio it is been sold is known in this session(day1).
Awaiting and much interested to know more in the upcoming sessions.

  • A stock market or a share market is a place where shares of public listed companies are traded.In order to raise capital the companies issue shares to the general public through Initial Public Offering (IPO)

  • The purpose of stock market is to provide a regulated exchange where investors can buy and sell shares of stock safely in public corporation and owners of companies can acquire investment.

  • Types of markets-consumer markets ,physical business market,non-physical market,financial markets,illegal unauthorized markets. Super Market, Vegetable Market, Share Market,etc... Difference in share market is products are in demat form when compared to other market products and trade time difference is there while Similarities are buyers and sellers will trade their materials

  • SEBI is a regulatory body for finance and investment markets in India. It plays a vital role in maintaining stable and financial investment through regulations.
    ROLE:1.Makes rules for controlling stock exchange, 2.Stop fraudulent in capital market,3.audits the performance of stock market,4.creates relationship with ICAI 5.educates investors etc.

  • SHAREHOLDERS-An individual or institution that legally owns one or more shares of stock in public or private corporation.RIGHTS:1. Voting rights,2.can receive reports 3.entitled to dividends 4.right to sue against the company 5.right to transfer ownership etc.
    PROMOTER:He who promotes the company from the base.He is necessarily need not be a owner.Promoter gains good return through selling and moves out completely sometimes. eg. MDs, CEO's
    DIRECTOR:
    A director is a person from a group of managers who leads or supervises a particular area of company.He doesn't not have to be a stockholder or an employee of the firm.They act on the basis of resolutions made at directors meetings and attain power from corporate legislation & article of association.

  • PRIMARY MARKET: securities are created here.Firm sells new stocks and bonds to public for the 1st time.This is the market where the Initial Public Offering (IPO) takes place.Also the government or public sectors raise money through bond offerings.
    SECONDARY MARKET: It is also referred as "Stock market".Here the investors trade among themselves.they trade on previously issued securities without the involvement of the issuing company. Eg.I invest Rs 10 with a company & I want the money to be refunded ,which could not be possible as the company would have already invested it into business.
    Alternatively I can sell the shares in stock market where it can be exchanged.

  • IPO is the very 1st sale of stock issued by a company to the public.it is often issued by smaller,younger companies seeking capital to expand. It can also be done by private companies seeking to be publicly traded.with the issuer obtaining the assistance of underwriting firm determines the type of security.offering price,amount of shares to issue& the time to bring in to the market.APPLICATION PROCESS:is made through Fixed Price process or Book building process or combination of both.
    1.In fixed price issue you know the price at which stocks would be allotted to you and payment is made at the time of applying.
    2.In book building process you know a price range at which stocks would be given to you (eg. 300 -350) and not the exact price.
    To apply for an IPO,there are two options available now a days
    i Offline&Online.
    IPO issue of HDFC standard life insurance CO Ltd.: Open Issue-Nov 7 2017 Close

  • A Share holder cannot have right to ask for refund. But he can transfer his shares to others and get money..
    A share holder have no rights for ask dividend of the company.

  • INVESTING and TRADING are two very different methods of attempting to profit in the financial markets.The goal of INVESTING is to build wealth over a period of time through the buying and holding of a portfolio of stocks, mutual funds, bonds and other investment instruments.Investments are often held for a period of years, or even decades, taking advantage of interest, dividends and stock splits.Investors are more concerned with market fundamentals, such as price/earnings ratios and management forecasts.
    TRADING:It involves the more frequent buying and selling of stock, commodities, currency price or other instruments, with the goal of generating returns that creates buy-and-hold investing. Trading profits are generated through buying at a lower price and selling at a higher price within a relatively short period of time. Traders often use /adopt technical analysis tools, such as moving averages and stochastic oscillators, to find high-probability trading setups.

  • FACE VALUE - dividing the capital into equal number of shares. DIVIDEND - Shares are given to the share holders from company profit, BONUS - company profit has been given to the share holders as extra shares when company earns good profit. Split - face value and share price will change as per the split ratio

  • SENSEX - An INDEX of the BSE. The Average of the top 30 companies are listed in BSE with base value being 3000. Nifty - An index of NSE. The average of top 50 companies are listed in NSE with base value of 1000
    .

  • Though BSE is said to be the oldest stock exchange NSE broke the barrier of trading regional wise allowing traders to trade across the nation thereby giving great exposure.Moreover NSE adopted technologies faster by adopting online trading without being having a place to trade.

  • Detailed explanation of face value?
  • more about split
1 Comment
  1. EQSIS 5 years ago

    Face value is just a denomination. It helps to make all the share base number as same.Face value is not a parameter which we valuate a company performance.

    Split of share come under the corporate action. It is nothing but splitting share into multiple parts. This will not change the value of the company, but it make small investor affordable to buy the share

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