1.Here we learn about basic of stock market what actually happens behind the screen and how new companies enter and how public can invest their capital for good returns.
2. How SEBI takes care of public capital.
3.how primary and secondary market are formed.
4. How to buy a share of the company through broker.
5. How our shares are stored and are transferred through digitally.
6. Two stocks exchanges operate in India NSE and BSE and what are their roles towards public
- : It is a place where seller and buyer meet to make a deal of shares of company.
- : It is a place where seller comes to sell shares and buyer comes to buy shares.
- : Types of markets are : share market , grocery market, vegetable market etc. Similarities between these markets are where buyer and seller meet to make a deal according to buyer or seller interest. Difference is that the product. In stock market shares are bought or sold through exchange whereas in grocery or some other market items are bought and sold in particular shop.
- : SEBI: security exchange board of India. Role of SEBI is to check that company has transparency towards the share holders and no cheating is happening.
- : SHARE HOLDER: The person who has invested some capital in that particular company and bought some shares of that company is now called a share holder. He has all rights towards that company or is also called owner of that company. PROMOTER: The person who has got some idea to make a project which can give good returns promotes his idea to public through advertisement to get capital , so to setup a company called promoter. DIRECTOR: He is the one who also owns a company but runs the show.
- : There are two types of market primary and secondary Market. Difference between them is that in primary market contract cannot be transferred but in secondary market contract can b transferred to another person .
- : IPO: Initial public offer where a promoter comes to advertise his company to public to get huge capital to setup a company. Process of applying: when a promoter gets an idea of some project that can get him a good returns but doesn't have enough capital to setup a company, he then goes to SEBI. Then he explains everything about his project to SEBI and when SEBI accept his project he then goes to exchange through them he can advertise his company so that public can invest and he gets capital according to public interest and some capital through bank also. IPO: Vishwaraj sugar industries limited ISSUE SIZE: 1,00,00,000 DATE OF ISSUE: 30 sep 19 to 04 Oct 19 FACE VALUE: 10 SUBSCRIPTION FOR RETAIL INVESTOR : 2,00,000
- : No share holder have got rights to ask refund or dividends of that particular company. Only thing is if share holder is no more interested in that company he can transfer his shares to another person
- : Difference Between investment and trading is that investment is done for long time period. The investor invest money for his future , so that in future he gets a good returns whereas a trader invest his money on to get returns on daily basis , weekly or monthly basis. He is more active in market on daily basis whereas investor invest his money in a discipline way and not so active in market.
- : FACE VALUE: It is the total capital divided by total number of shares. Eg( capital:1000, shares100 then Face value= 1000/100= 10 So Face value of that company is 10. DIVIDEND: It is the 100% profit given to share holders according to the face value. Eg if face value of company is 10 and if 'X' person is holding total 5 shares of the company so he gets 100% of the face value i.e; 10 multiply by number of shares holding by 'X' so dividend = 100/10= 10 * no. of shares(5) Dividend= 50 SPLIT: when face value of company becomes half called split and number of shares holding gets doubled.Eg: face value = 10 then split = 10/2= 5 . So split is 5 half of the face value. So now shares gets doubled with a new face value of 5. BONUS: when company gives additional shares to the share holder without charging anything called bonus.
- : BSE(BOMBAY STOCK EXCHANGE) is also known as SENSEX it contains top 30 SENSATIVE companies of India . It is located in Bombay. NSE(NATIONAL STOCK EXCHANGE) is also called as Nifty because it contains top 50 companies of India which is located in Delhi.
- : BSE is an old stock exchange which has only top 30 companies counter in their office and people show less interest in BSE whereas NSE is an New stock exchange which contains 50 companies counter in their office and giving tough competition to BSE and people find more easy and convenient to access online trading and it is now said to be most trusted trading website.