Share market is a place where people from all over the country can buy or sell shares. Nowadays tradings are done in online using (DEMAT A/C) .
NIFTY consists of top 50 actively trading companies from 24 different sectors. It is traded in NSE (National Stock Exchange).
SENSEX consisting of 30 stocks based on the total volume of stocks traded. It is traded in BSE (Bombay Stock Exchange).
If a public limited company wants huge capital they offer IPO (Initial Public Offer) to the public and it is conducted only once in the life time of the company.
- : The place where we buy/sell shares is known as share market.
- : This helps multiple people to trade various companies shares in one place.
- : Similarity: Anyone can buy or sell any share ,in any quantity. Differences: In other markets anyone can buy or sell products directly, but in share market we can buy or sell shares only through a broker.
- : SEBI means Securities Exchange Board of India. 1. It checks the transparency of the company. 2. It controls the Stock Exchange . 3. It prohibits insider trading. 4.It protects investors interest .
- : Share holder: He/She is the owner of the company. Promoter: One who promotes the company from the base, may not be owner. Director: One who runs the business.
- : primary market: Issue of share for the first time and the invested cannot be re-funded. Fixed price. Secondary market :The shares can be traded multiple times. Prices fluctuate due to demand and supply.
- : IPO means Initial Public Offer. After seeing the advertisement the public who is willing to offer money ,has to fill the IPO form with DD to the respective company.
- : No.The company cannot refund the money but the shareholder can ask for the dividend as per the company policies.
- : Investments are made in long term and tradings are made in short term.
- : Face value is just a denomination. Dividend: It is the percentage share of profits in the company. Bonous shares: To utilize the company's reserves and surplus by issuing of shares to the existing shareholders without taking any consideration. split: When share price goes up the share are split, still have same value.
- : SENSEX: It is an index of the stocks inBSE. It has a list of 30 stocks. NIFTY: It is an index of the 50 most actively traded stocks from across all sectors.
- : NIFTY consists of top 50 companies from 24 different sectors. NIFTY is computed from the performance of top stocks from different sectors.While BSE is based on the total volume of stocks traded.