Basics of stock markets and exchanges

Stock market are of primary and secondary market. A Company that requires additional capital raises IPO and get its investment from retailers. Those shares gives to retailers through IPO are listed in secondary markets for trading with other investors. Issuing of bonus and dividends are the discretionaries of the company management and it can’t be insisted by the shareholders of the company. Promoters need not to be owners of the company however owners are some time back are promoters of the company. There are 2 exchanges in india such as BSE and NSE where it facilitates the traders to trade their equities / stocks. Nifty and Sensex are index stocks which tells the direction / trend of capital markets.