Stock market is a place where we can buy and sell shares by investing money in order to make profit. The trading of shares is executed through order, either buy order or sell order. The time limit for the execution of buying and selling the order may be within a day or more that a day. (Say intraday or short term or long term)
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Hi,
In response to your question
Your Question 1:: What is bonus and split?
Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns.
Stock splits are mainly carried out with the intention of increasing liquidity. Once liquidity increases, more buyers and sellers trade in the stock. The split does not affect the value of your holdings even and it doesn’t affect the share’s intrinsic value. Only the advantage is When a share’s price runs up too high, smaller investors find it difficult to buy it. To make it attractive for such people, the company carries out the split, which brings down the share price. So, while some investors may be unwilling to pay Rs 1,000 for a certain stock, they may be more inclined to buy it at Rs 250, following a 4:1 split.
Your Question 2:: How NSE becomes more popular than BSE?
NSE becomes Popular among Traders Due to the Early introduction of the derivative Segment…
BSE has over 5000 Companies Listed, but most of them are not so active / traded on day to day basis
NSE has less than 1600 companies. but most of them are active