Stock market/Exchange is just like any other Consumer Product Market here instead of consumer products stock are traded. SEBI is the controlling authority of Stocks in India. NSE and BSE are the two stock exchanges in India. Two types of markets are there, one is primary where IPO’s bought directly from company and the second one is secondary where the stocks are traded.
The share holders are the owners of the company but they cannot run the business, instead they will appoint the Board of Directors, who runs the business. Share holders cannot control the Directors, they can elect them. Directors are the ultimate decision making authorities.
- : Stock market, like any other market it is a place were buyers and sellers meet to trade(buy or sell) the stocks.
- : The investors who bought IPO's cannot redeem the shares to the company. So they have to sell it to buyers who are ready to buy the shares. For this purpose stock market is formed.
- : SIMILARITY: 1. TRADING DIFFERENCES: 1.REGULATED 2.HIGHLY FLUCTUATING 3.TRADERS CAN PARTICIPATE ONLY THROUGH BROKERS.
- : SEBI- SECURITIES AND EXCHANGE BOARD OF INDIA 1.CONTROLLING AUTHORITY FOR STOCK ISSUES AND EXCHANGE IN INDIA.
- : 1. SHARE HOLDER: The one who possesses the shares. They are the owners of the company. 2.PROMOTER: The one who promoted the company for public issue. There can be more than one promoter. 3. Director: The one who was appointed by the share holders to run the business.
- : When a company issues the shares for the first time it is called IPO and the place where investors can purchase this IPO's is called the PRIMARY MARKET. Ones IPO's are purchased they will be called as stocks/shares/equity. The place where these stocks are traded is called the SECONDARY MARKET.
- : IPO- INITIAL PUBLIC OFFERING. When a company issues the shares for the first time it is called IPO. For purchasing IPO, we have to give our details(DEMAT No, PAN No,ETC) to the company which is issuing IPO and transfer the money to the mentioned account (details will be available in advertisement ). Depending upon the demand shares will be allotted.
- : No share holders cannot. For the purpose of continuity of the business, the share holders don't have rights to ask for refund. Regarding dividends it purely Board of Directors decision share holders can have no rights.
- : If a person is buying shares for a long time need it is Investment. If a person is buying shares for short time gains it is Trading.
- : FACE VALUE: IPO value when it is issued. Dividend: The amount paid out of the profit to the share holders. Bonus: Additional shares given to the existing share holders instead of giving as dividends. Split: Additional shares are given to the existing shares holders to increase the outstanding shares of the company.
- : SENSEX: Is an index used by Bombay Stock Exchange, it comprises of 30 largest and actively traded company in BSE. NIFTY: Is an index used by National Stock Exchange, it comprises of 50 largest and actively traded company in BSE.
- : Even though BSE is older than NSE, it is the NSE which introduced the index system(NIFTY). It enabled the traders to analyse the market as a whole. It also enabled traders to trade on the NIFTY index through derivative instruments(like Futures, Options, etc.,). It is because of this reason NSE is popular that BSE. (Note:BSE is having its own index now. but it is introduced late).