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Basics of Stock Market

1)A stock market is through which traders buy and sell shares.
2)Face value , dividend , bonus , split – all these are decided by the director of the company and the share holder has no say in it.
3)When the trading deal is executed it is known as a trade settlement.
4)The ability to calculate the risk-reward ratio is known as knowledge.
5)If the risk is greater than the reward , it is known as gambling and if the reward is greater than risk it is business.
6)Income minus expense gives us profit/loss. If the answer is positive, then it is a profit else, loss.
7)SEBI keeps a check on malpractices and makes sure that the trade is clean.

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