Stock market is a place where buyers and sellers meet to buy a product. The product used in share market is shares. Anyone can buy shares from share market provided they comply with Exchange rules. NSE and BSE are the biggest exchanges in India. The respective index is Nifty and Sensex. IPO is issued by the company before listing in stock market. After the listing is done, the shares are then traded in secondary market. Shares can be bought in apiece or in bulk in respect to the capital we like to invest.

  • : Stock market is a place where buyers and sellers meet to buy stocks.
  • : We need stock market to buy shares and sell shares. Share market is a place where we can see all stocks in one place where buyers and sellers can meet to do trade.
  • : Vegetable market, fish market, flower market, etc. There are lot of similarities between these market. They all evolve around one concept. Market is a place or roof under where all the buyers and sellers meet. The main difference between Share Market and other market is the commodity they deal with. Other market products can be felt physically, whereas online share market shares can be bought only digitally and online.
  • : SEBI role is to regulate the exchanges. SEBI is an independent body that governs exchanges. Any complaint or grievances regarding exchanges will be dealt by SEBI.
  • : Share holders are the one who owns the shares and are in a way co-owner of the company. Promoter is someone who raises funds through IPOs or who runs the business. Director is someone who takes decisions and manages the company.
  • : Primary market is place a where IPOs are issued. Any company that wants to list their company in exchanges have to first make the public first in primary market, where public can know about the company. Secondary market is where shares are allotted to public and where buyers and sellers can actually trade.
  • : IPO is Initial Public Offering. Before the shares are listed in exchanges, IPOs are the basic route to enter market. IPOs are created to make public aware that a company is going to be made public and anyone interested can buy shares in the company and become co-owner. Process of applying IPO is that public have to apply for shares and company allots shares to the public based on demand. IRCTC recently issue IPO. They issued IPO on Sep 30, 2019 and closed IPO on Oct 3, 2019. IRCTC was oversubscribed by 112 times. The listing date was Oct 14, 2019.
  • : Share holder does not have rights to ask for refund or dividend. It is up to the company to give divident.
  • : Investments are something done to meet future expenses. Long term investments can be beneficial provided we select proper stock through analysis. Trading is short term where the trader's idea is to gain profit in short term. The risk in trading is more compared to investment. Investment can be done in many ways, gold, land, mutual funds, SIP, etc. but trading can be done in stocks or commodity only.
  • : Face value is the price fixed by the company during IPO. Dividend is split of profit that the company has earned during the term. Bonus shares are issued from a company's retained earnings held back for many years. Split is where the company splits the existing share price in two or more pieces so that many small time traders can trade their shares in the way the company's revenue can be multiplied.
  • : SENSEX stands for Stock Exchange Sensitive Index and NIFTY stands for National Stock Exchange Fifty. Sensex is index for Bombay Stock Exchange (BSE). NIFTY is index for National Stock Exchange (NSE). Both companies have a set of top performing companies, 30 and 50 respectively, and the exchanges take average of all the companies stock price and calculate them based on that.
  • : BSE is the oldest stock exchange and was following old school books whereas NSE was a new entrant and followed new ideas. NSE was more transparent than BSE. While BSE was trading in floors, NSE started online trading. Investors started to believe NSE more than BSE. There were other exchanges too like Madras Stock Exchange, Calcutta stock exchange, but eventually closed due to low trades and was not able to keep up with the market expectations.
2 Comments
  1. Suresh Surulimuthu 3 years ago

    Hello Sir,
    It is a good start. All the best.

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