BASIC UNDERSTANDING OF STOCK MARKETS

1)Stock Market is a place where buyer and sellers meet to buy or sell shares and debentures of companies, and shares (Equity) based products
2)Stock Market are needed to bring buyers and sellers at one place to provide liquidity to those who have investment in a company and wants to exit and to those who now wants to be investor in the company.
3)Stock Markets are also needed where the New Companies make available their shares to investors for investing in their companies and thereby raise capital for productive purpose.
4)Stock Markets are similar to the other produce markets, the difference being that here the buyers and sellers do not know each other but they undertake trading activity through exchanges.
5)Face Value of a stock is the nominal unit value of a Share printed on it at the time of issuing the share.
6)Dividend is the portion of profit made by the company shared by the company, with the shareholders.
7)Bonus Shares are the shares issued after setting off the accumulated amount of Reserves and surplus, to the existing shareholders.
8)Split is nothing but the splitting of the face value of a share say Rs10 Face Value in smaller face value share of Face value say Rs2. So a single share of Face value splitted into 5 shares of face value of Rs2 each.Face Value is the nominal unit value of a Share printed on it at the time of issuing the share.
9)Dividend is the portion of profit made by the company shared by the company, with the shareholders.
10)Bonus Shares are the shares issued after setting off the accumulated amount of Reserves and surplus, to the existing shareholders.
11)SENSEX and NIFTY are numerical representation of the valuation of top Company shares traded in the market .