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Basics of stock market

Stock market is a secondary market where a common individual can buy and sell shares of a company which is listed in the stock exchange.Generally there are two types of markets.Primary markets and secondary markets.Primary markets are the places where the IPO’ s are offered by determining the value of the company.Secondary market is stock market where the stocks are traded.The securities and exchange board of India is the regulator for the securities market in India.The role of the SEBI is to protect the investors interest and to regulate policies such that the exchange and stock broker follow the rules.Face value is the original cost of the stock shown on a certificate.
Dividends are payouts given by the company to the share holder in terms of stock or cash.Bonus shares are additional shares given to the share holders without any additional costs.Split is increasing the number of shares by reducing the number value of the stock.

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