Basics of stock market.

The stock market is a place were the buyers and sellers meet to trade on stocks.SEBI is an organisation that sets rules and maintains effective regulation in marketplace. When company needs a capital , they issue share in exchange to the money given and people who hold shares are called shareholders.There are two types of market known as primary and secondary market, in primary investors buy the securities directly from company and in secondary the investors trade among themselves. Secondary market is were the retail investors can trade.A company can raise its capital through public by getting approved by SEBI and offering IPO. Shareholders have no right to get refunds instead can sell there shares.NSE and BSE are popular stock exchanges.SENSEX is the index used for BSE and NIFTY is the index for NSE.