A stock market is a place to trade in shares. A person registers with a broker and then can buy and sell shares of a company. SEBI ensures transparency and accountability. A person can also buy directly from the company in an IPO. However, those shares can be sold only in the stock market which is the secondary market.
NSE and BSE are the two most popular exchanges in India. For a fee, one can trade. From earnings companies can give bonus or dividend to current shareholders.

  • : A place to buy and sell stocks and shares.
  • : So that buying and selling of equity is decentralized, unbiased and governed by market forces of demand and supply.
  • : buying and selling according to market price is same as other markets. Decentralized and transparent trading is different factor
  • : Securities Exchange Board of India (SEBI) is the regulatory body for stock market. It ensures fair play and regulates market participants.
  • : A share holder is someone who can buy or own share capital in a company. A promoter is primary investor who helps start the company. Can be both a share holder as well as a director. A director is someone who manages the company and is usually a part of the company's Board. He can also be a promoter/ share holder
  • : In a primary market, the first shares. stock is offered for sale through an IPO. Investor buys directly from the company. Post that, any buying and selling that takes place occurs in the secondary market. Individuals/ organizations buy and sell among each other.
  • : An IPO is when a company gets listed for the first time and offers shares to raise capital. Investors can apply directly to the company. Example: Metropolis Healthcare Issue open date was 3-4-2019 and close date was 5-4-2019. Listing date was 15-4-2019. Face value was Rs 2 but offer place was 877. Not sure how that works as I thought IPO gives shares based on facevalue
  • : Not really. The decision is made by the board/ management. There may be lakhs of shareholders for a company so ordinary shareholders cannot make demands. Their percentage of share in the company will be low. But if someone holds a significant stake then they can exert more power on decision making.
  • : Investment is where one hopes for money to grow over a period of time. Investors buy and hold. Trading is like a regular activity where the purpose is to make money in the short term, It's more like a business. For investment, a well-performing reliable company which looks like it has a strong future is important. In trading, it's important to know how a company will perform on a per day basis.
  • : Face value is the price at which a stock is offered at the company. It is the launch price of each individual stock unit by the company. Dividend is when a company makes a profit and decides to share that profit with its existing owners (shareholders). It is upto the company to declare dividend or not and is calculated based on face value of shares. Bonus is when the company decides to issue additional shares to existing shareholders. It's usually done in a ratio. for example 1:1 - One new share for one old share. Split is when existing equity shares are split. Face value is split so that one share becomes two and so on. Example: If A owns one share of FV 10 and the company goes for a split, then A will now own 2 shares of FV Rs 5 each. Bonus is from profits/ split from existing capital
  • : SENSEX is bombay stock exchange based on weightage of 30 companies Nifty is national stock exchange based on weightage of top 50 companies. Both are stock exchanges and their indices are very popular
  • : NSE brought in technology first which led to transparency. Also for small trades, brokerage charges are less in NSE. As digitisation occurred, other stock exchanges began to lose out and they eventually folded. NSE is owned by CCIl. Don't know about BSE
  • : In IPO, why is offer price different from face value?
  • : In IPO what is holding period return and listing price%?
1 Comment
  1. Naresh 2 years ago

    Hi,
    Your query: In IPO, why is offer price different from face value?
    you may watch this video to know why the offer price is different from face value. https://www.youtube.com/watch?v=e7M9PZvYUSo

    Your query: In IPO what is holding period return and listing price%?
    what do you actually mean by holding period return?

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