Stock Adda

Stock market is where buyer and sellers of stocks meet and make deals. These deals are made every second and is facilitated by the exchanges(nse&bse). Companies and Corporations issue shares to the general public thereby raising equity capital for themselves and making the public part owner in the company. The stock markets are very similar to other markets in the world but compared to other markets, it is highly regulated. SEBI(securities and exchange board of India) has the responsibility of regulating the markets and bring in new rules time to time for fair trade practices. Shareholder can be an individual or an entity buying shares and thereby becoming a part owner of the company. Promoter/s are individuals or group of individuals or entities responsible for the preliminary existence of the company. Director is an appointed member from the board of directors responsible to execute Company’s policies. There are two types of market, primary and secondary. Primary market is where new shares are issued directly to the general public(IPO) whereas these same shares are traded by sellers and buyers in the secondary market. IPO(initial public offering) is where companies sell their shares directly to buyers. A shareholder doesn’t have any rights for refunds and neither may he ask for dividends. Investment is very different to trading. Investment involves buying share/s of one or many companies and holding onto them for a long time wheras trading involves tremendous risks as share/s are bought and sold sometimes on the same day as well. Face value is the legal capital of a share. Face value is always mentioned on the IPO document when companies float an IPO. Dividend is after tax profits shared by a company to its shareholders. Bonus shares are additional shares given to shareholder.