stock market is a place where share of public listing companies are traded.
Purpose of stock market is to provide structured and regulated exchange where investors can safely buy and sell shares of stock in a public corporation and where company owners can acquire equity investment.
SEBI – THE SECURITIES AND EXCHANGE BOARD OF INDIA.
SEBI is the regulator for the securities market in INDIA
SENSEX : it is a free float market ,weighted stock market index of 30 well established and financially sound companies listed on BOMBAY STOCK EXCHANGE .
SENSEX is calculated based on free float capitalization method, which provides a weighting for the effect of a company on the index. this method uses its float, which is the number of shares that are readily available for trading.

NIFTY : NATIONAL STOCK EXCHANGE FIFTY. It represents the weighted average of 50 indian company stocks in 12 sectors.
NIFTY is calculated based on top 50 stocks.
NSE becomes more popular than BSE because NSE introduce FUTURE and OPTION trade before BSE introduce it. Because of that , NSE attracts much larger volume of market than BSE
As a share holder we cannot ask for refund / dividend , because the company may invest my money . If i need my investment to be refunded i need to exchange / transfer my stock. in the secondary market i.e stock market.
Primary market – If company needs investment from public, it make mass advertisement explain in detail about their business, if the public is interested they will invest through online.
Secondary market – Nothing but stock market as a retailer if i bought a share from a company say TCS , if i need my money to be refunded its not possible for me to get it .to get refund i have to exchange my shares

  • It is a place where shares of public listed companies are traded.

  • Purpose of stock market is to provide structured and regulated exchange where investors can safely buy and sell shares of stock in a public corporation and where company owners can acquire equity investment

  • Retailer market , wholesale market , stock market .
    similarities: In all these markets products where exchanged ( products like goods, stocks ) between buyer and seller for a certain price .
    Difference : only difference is what is been exchanged . retail or whole sale market goods will be exchanged in case of stock market stocks / shares will be exchanged.

  • SEBI - THE SECURITIES AND EXCHANGE BOARD OF INDIA.

    SEBI is the regulator for the securities market in INDIA.

  • SHARE HOLDER - OWNER OF SHARES IN THE COMPANY. Although they are the owners , they do not manage operations, a board of directors will do it.

    Promoter - Who promotes the company , may not be the current owner.

    Director- Who runs the company , selected by the share holders.

  • Primary market - If company needs investment from public, it make mass advertisement explain in detail about their business, if the public is interested they will invest through online.

    Secondary market - Nothing but stock market as a retailer if i bought a share from a company say TCS , if i need my money to be refunded its not possible for me to get it because already company will invest my money , in order get my investment back i need exchange / transfer my stock .

  • IPO - Initial Public Offering .

    PROCESS OF APPLYING FOR IPO: 1. SELECT A BANK ( AS A UNDER WRITER )
    2. DUE DIGILENCE AND FILINGS
    3.PRICING
    4.STABILIZATION
    5.TRANSITION

    Recent IPO issue : DINESH ENGINEERS WITHDRAWS IPO ON WEAK SENTIMENT

    DINESH ENGINEERS , a COMMUNICATION INFRASTRUCTURE PROVIDER, has withdrawn its ipo due to weak demand.

    IPO ISSUE DATE : The company opened its public offer on SEPTEMBER 28 with a price band of 183-185 per share.

    The issue was subscribed just 17 percent on the third and last day of the offer on 3rd october 2018.

    The company expected to raise rs.185 crore for business expansion and general corporate purpose and to meet public issue expenses.

    Book running lead manager to the DINESH ENGINEERS has informed the exchange that the entire application money shall be refunded forthwith and the ipo may be treated as withdrawn.

  • As a share holder we cannot ask for refund / dividend , because the company may invest my money . If i need my investment to be refunded i need to exchange / transfer my stock. in the secondary market i.e stock market.

  • Investing entails building wealth gradually over an extended period of time through the buying and holding of stocks

    Trading involves more frequent buying and selling of stocks, with the goal of generating faster returns.
    when investing , investment is often held for a period of time in contrast to trading , which is frequent and many a times , multiple times a day.

  • Face value : The cost or value that is shown on the stock certificate.

    DIVIDEND : A part of a company's profit that is paid to the people who own shares in it.

    BONUS : Bonus shares are additional shares given to the current shareholders without any additional cost , based upon the number of shares that a shareholder owns.

    SPLIT: A stock split is a corporate action in which a company divides its existing share in to multiple shares to boost the liquidity of the shares. although the number of shares outstanding increases by a specific multiple, the total value of the shares remains the same compared to pre split., because the split doesnot add any real value

  • SENSEX : it is a free float market ,weighted stock market index of 30 well established and financially sound companies listed on BOMBAY STOCK EXCHANGE .
    SENSEX is calculated based on free float capitalization method, which provides a weighting for the effect of a company on the index. this method uses its float, which is the number of shares that are readily available for trading.

    NIFTY : NATIONAL STOCK EXCHANGE FIFTY. It represents the weighted average of 50 indian company stocks in 12 sectors.

    NIFTY is calculated based on top 50 stocks.

  • NSE becomes more popular than BSE because NSE introduce FUTURE and OPTION trade before BSE introduce it. Because of that , NSE attracts much larger volume of market than BSE

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