Basics of Stock Markets

Stock market for issuing, buying and selling stocks of companies which are listed on the stock exchange. To provide capital to companies. Securities and Exchange Board of India is the regulatory body of the securities market in India. Shareholders are the owners of the company. Promoter is someone who conceives an idea for setting-up a business. Director is a person who is appointed or elected member of the board of directors of a company. Primary market is where company rise funds from general public. Secondary markets are used to trade the shares which companies issued to general public. Initial Public Offering (IPO) is the very first sale of stocks issued by a company to the public. Shareholders have no right to ask for refund but he can transfer his share to someone who is interested to buy those shares in the secondary market. Dividend decisions are taken in the annual general meeting by the all the owners, one individual cannot ask for dividends rather such important decision needs to be taken by all the shareholders collectively. Sensex also called BSE 30, is the market index consisting of 30 well-established and financially sound companies listed on Bombay Stock Exchange (BSE). Nifty also called NIFTY 50, is the market index consisting of 50 well-established and financially sound companies listed on National Stock Exchange (NSE).