Basics of Stock Market –
The stock exchange is the marketplace where shares are traded. Traded prices are different to Book value or the face value. Primary Market – IPO, Secondary Market – Stock Exchange. Shareholders are part owners of the company. Equity Shares mean the value of company shared into an equal amount of shares with same face value. Some primary terms – IPO, Dividend, Bonus, Split, Face Value, Book Value, Traded Value, Equity Shares, SEBI, Share Premium, NIFTY, SENSEX (Sensitive Index). Share premium is when a company asks the market price for shares on FPO (Follow-on Public Offering). The bonus is when profit is shared as more shares and Dividend is when profit is shared as money between the shareholders. The Split is when existing shares are divided into equal parts to bring more shareholders into play.