Nothing to be scary about, stock market is just like any other markets where buyers and sellers meet to do a trade, in this case its the stocks.
The place where this happens is at the exchange either BSE or NSE. A company can grow from individually owned to a partnership to a private limited to a publically traded depending upon the project/business which is in. If it decides and needs a raise huge capital, it go through the process of IPO, set the denominations as face value and get listed along with other stocks in the stock exchanges. The person who subscribe this IPO is issued with shares and hence becomes share holder of that company. The share holder appoints the directors for the company and the director runs the business and holds all rights to issue the dividends/bonus or split as desired to run the business. SEBI regulates this process for the companies and the investors. Promotor promotes the company and takes it to the public. More public/traders join the party in the secondary market and create demands and supply which determines the price movements.

1 Comment
  1. vignesh 6 years ago

    Hi sir,
    your answers are brief and appropriate, will be useful to recall.

Leave a reply

©2024 | Rights Reserved | EQSIS | Terms and ConditionsPrivacy Policy

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

Log in with your credentials

Forgot your details?