Stock market is the place where one can buy and sell shares or equities. There are two types of market – primary and secondary. Primary market is the place where companies can release IPO to collect money from the public and provide share(part ownership ) on the company. Shares bought in primary market can be sold in only secondary market after it is listed. BSE and NSE are the two secondary market where the individuals can buy or sell shares. Sensex and Nifty are the indices of BSE and NSE correspondingly. And they provide the overall performance of the market. Coming back to distribution of profit. Company can share their profit with shareholder by providing dividends. Company can also provide bonus shares to the share holders from their reserves and profits. Similarly, if the stock is over prices.. then the company can go for a split where the share count will be doubled and the face value will be reduced by half and the share price will be reduced by half. When the share price is less, it may attract many retail investors or traders to buy the corresponding company shares.

1 Comment
  1. Naresh 3 years ago

    Hi,
    In response to your question

    Your Question 1: Place to find reasons for rising and fall of the market?
    The main reason for movements in a company’s stock price is due to supply and demand. Fundamental factors that drive the stock prices based on a company’s earnings and profitability from producing and selling goods and services. And also technical factors like chart patterns, momentum, and so on.

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