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
