Stock market is a medium to exchange the shares between the public.When the company got initiated it need some capital SEBI will allow the company to get investment from public with some conditions. The company provide the face value and the share available based on the capital they required. After that if any of the share holder need money after some period and if the the company is not ready to provide that back he can exchange the shares with others in a medium called Stock Exchange.

  • : It is a public investment on company's capital
  • : Stock market is a medium to exchange the shares between the public.The invested money is already in use by company so it is not possible to a company to refund it, So stock market is introduced to allow the buy and sell.
  • : There is no major difference between stock market and other markets, Just the Product is vary.
  • : It is a regulatory authority and it ensure the stability of the financial market and also for investors it give protection, For issuers it provide market place.
  • : Share Holders are the one who are provided with shares, Promoter is the one who promoted the company at starting for the capital raise, Director is like an Officer to organize the company he may also be major share holder.
  • : Primary market is place where individuals buy the share of the company physically with the proper interaction with the management. But secondary market is to exchange the provide shares between the public base on their price interest Ex: Real Estates(Primary) All online stock exchange is secondary
  • : It is initial public offer to get investments from public initially.Process to apply is fill the form given by industry with DD attached. Ex: AVG Logistics 28-Mar-18 105-107
  • : No,It is depend on the company management. The money may be reinvested for future growth of the company any other expenses.
  • : Investment is a common method in any modes. like lands, Crops , house may be anything. But, trading is refer to stocks and their assets in medium called Stock Market.
  • : Face value is initial equity price mentioned by the company Dividend is equal distribution of profit gain by company to share holders Bonus is offer shares given to the existing share holders Split is dividing the face value and increase the share quantity
  • : SENSEX is the performance of top 30 companies of BSE NIFTY is the performance of top 50 companies of NSE.
  • : NSE brought transparency to the stock market and direct participation of traders/investors. For retails traders, NSE transaction charge is quite low than BSE thus making it the preferred exchange in India.
  • : How Bonus and split didn't effect the share price?
  1. vignesh 4 years ago

    Hi sir,
    Answering to your question 1 :: How Bonus and split didn’t effect the share price?
    Bonus/Split doesn’t affect the value of your holdings because in bonus/split, the number of shares outstanding increases and the market price per share will decrease in the same proportion.

    Consider your total outstanding shares are 10 at a market price of Rs.100 and the total market value is (10*100) Rs.1000

    If Stock split/bonus is 2 to 1 {For every one share you will be given another share}

    Your total outstanding shares now will be 20 but the total market value will not be changed because the market price drops immediately to Rs.50.
    The total market value is still remains the same after bonus/split (20*50) Rs.1000

    • Author
      Jagadeesh 4 years ago

      Hi Vignesh,
      It may not effect the value of holding but it will effect the share price right.

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