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Basis of stock market for beginners

1.Stock market is the place where buyers and sellers can perform trade (buying and selling stocks).stock market is where traders can find best price (bid and ask) for their stocks.
2.Indian stock exchange is regulated by SEBI. It protects the clients , It has power to inquire and investigate fraud traders accompanied with penalties.
3.Share holders are the current owners of the company who owns shares/stock of the company.
4.Promoter is the founder of the company (promoted the business from scratch).
5.Director is the one who takes responsibilities and manages the company (MD/CEO)
6.Primary Market is where the company shares are bought directly from company (IPO)
7.Secondary Market is where the company shares are exchanged for cash through stock exchange.
8.IPO- Initial Public Offering. It is the first time where stock of private company is offered to public via big announcement and huge advertisements.
Share holder don’t have right to ask for refund or dividend
Company has rights decide whether to distribute its profit to share holder as “dividend” or to use the profit for business expansion purpose.
9.Investment and trading are the two types of business followed in stock market.
Daily market fluctuation does not have greater impact on Investment holders whereas intraday traders have direct impact.
10.The Nifty and Sensex is an index of all the major companies listed on NSE and BSE respectively .
Market trend can be termed as bulliesh or bearish with NSE and BSE index

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