Buying of shares at the face value of an IPO issue or buying and selling at current share price in the stock market for a long or short time through Demat account and making a profit out of it.

  • : A place to exchange or transfer the shares is called stock exchange.
  • : To do Trading by buying and selling the shares and make profit.
  • : Vegetable market, Gold Market, Fish Market, Stock Market etc.. Each and every market differs by its product. In stock market the buyer and seller do not meet in person (online trading) but in other markets people meet each other in person. The similarities might be with respect to terms like profit-loss, buyer-seller and activity like buying-selling..
  • : SEBI is Security Exchange Board of India which is a Regulatory Authority established to protect the interests of the investors.
  • : A person who owns a share or more shares of a company are called share holders. Share holders have the rights to appoint the Director. A Director is a person who manages the company and runs the show on behalf of the share holders. Promoter is a person who promotes the company from base (not necessarily be the owner).
  • : Capital being collected from public through the process of IPO ( Initial Public Offer). The place where this is carried out is called Primary market. Secondary market is the stock market where the exchange or transfer of shares takes place.
  • : IPO is Initial Public Offer which is a process collecting capital from public by the companies through primary market. Recent IPO issue is from Mangalam Global Enterprise for 21.57cr on 15th Nov with a face value of Rs.51.
  • : No, the share holder do not have the right to as ask for any refund or any dividend.
  • : Person who invest is known as Investor, who invests or buys and holds the same for a long time. Eg: Investing in schemes of Post Office, Investing in Recurring deposit via Bank. Person who trades is called Trader who buys and sells shares in a short period of time to make profit. Eg: Trading in stock market via Demat account.
  • : Face value is the denomination of price of a single share of a company. Dividend is any profit we make out of the company and which is shared back to the people who invested. The company which divides its existing shares into multiple shares and issue those shares to its current share holders is called Split.
  • : The top 50 companies average performance will reflect as Nifty under National Stock Exchange(NSE). The top 30 companies average will reflect the performance of Sensex under Bombay Stock Exchange (BSE).
  • : The liquidity of stock is high in NSE when compared to BSE as a result the Traders have more options or choices of trading in NSE. This is the basic reason for NSE becoming popular than the BSE.
  • : What is Bonus?
  • : Is Bonus and split are same or different?
  1. Suresh Surulimuthu 3 years ago

    @divghu Good Start.! All the Best. I try to answer your questions.

    Bonus is the additional shares issued by the company to their existing shareholders. The reserves and the surplus amount retained by the company through profits are considered as additional capital. The face value remains the same here. The market value of the share is reduced.

    Split is where the existing number of shares are split into fractions by reducing the face value. It may improve the liquidity of the shares. The market value of the share is reduced.

    So Bonus and Split are different in terms of face value.

    • Author
      Jaya 3 years ago

      Thank you so much for your explanation about bonus and split. It’s very clear now…

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