Stock market brings buyers and sellers together in a marketplace. It is centralised, transparent; employs cash settlement only. SEBI is the Regulatory Authority for the Indian Securities Market. Its role is to protect the interests of shareholders.
There is a primary (IPO) and secondary market (post IPO).
An individual who purchases a share in a company becomes a share holder;
Bonus-you get an additional shares. The FV remains unchanged.
Split- stock is split; FV changes. 1:2 stock split on a Rs.10/- FV stock, yields 2 shares with a FV of %s.5/- each.
Sensex, Nifty are indices; difference between trading and investing.

2 Comments
  1. vignesh 5 years ago

    Hi,
    This will be the appropriate answer for the question What are the differences between investments and trading?:
    Investment is where buying and holding stocks for a long period of time (6 months to few years) to earn returns on investment.
    Trading is buying and selling of stocks more frequently to earn profit.

  2. Author
    Vivek 5 years ago

    Noted. Thanks Vignesh.

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