STOCK MARKET:
*Stock is a general term used to describe the ownership of any company.
*Stock market is a place in which shares of public listed companies are traded through exchange(Buy/sell).
NEED OF STOCK MARKET:
*To create wealth-One can earn good returns by investing in stock market.*It is a mechanism through which one can analyse which company is performing well and which doesn’t.
*It regulates exchange of stocks.
SEBI
*To prevent malpractices(Delay in delivery of shares, price rigging, violation of rules) in stock market, Government of India has set up an agency called Securities Exchange Board of India(SEBI).
*ROLES-*To prevent fraudulent and to protect the interest of people in stock market.
*It helps to ensure fairness, transparency, accountability in stock market.
*It regulates the activities of stock exchange.
*To regulate and develop code of conduct for intermediaries such as brokers.
SHAREHOLDER,PROMOTER,DIRECTOR
*SHAREHOLDER is a person who owns shares of the company.
*person pays money for it and owns a small portion of a company(depending on number of shares person owns).
*ROLE-Share holders make financial investment which entitles them with voting shares to elect directors.
*Share holders do not have any rights to be involved directly in company management.
*PROMOTER is the person who originates the idea for formation of a company.
*In simpler terms, promoter is a person who starts anything(Beginner).
*ROLE-Promoter is responsible for demonstrating the features of product/service to a client.
*DIRECTOR is a person who is responsible for managing the company’s business activities.
*ROLE-Determining & implementing policies and making decisions.
SENSEX &NIFTY 50*Sensex is a benchmark index of Bombay Stock Exchange(BSE).It is composed of 30 stocks.
*sensex =(sum of free float market cap of 30 benchmark stocks)*Index factor
*Index=100/market cap value in 1978-79
*Base year and base value of Sensex is 1978-79 and 100 respectively.
NIFTY50
*It is benchmark index of National Stock Exchange(NSE).It is composed of 50 stocks.