Stock market is an active place for brokers and traders to buy & sell shares. It is governed by a regulated body called SEBI which governs all the activities of a stock exchange. It helps the companies to reach the public in a much easier way.
- : A place to where company shares are issued, bought and sold
- : It is platform for the stock brokers to buy and sell the shares listed on the stock exchange.
- : BSE, NSE, MSE - List of stock exchanges that I know. They all do a similar job of listing shares and they are differentiated by their popularity and usage by the investors.
- : Securities Exchange Board of India - Acts a regulatory body and set the governance for stock exchange in terms of share trading.
- : Share holder - Person holding a share in a company Promoter - A person who forms the company, eg. incorporates. Director - A person appointed by the company to manage it's operation.
- : Primary Market - A Market place where new shares are traded. Secondary Market - A place where formerly issues shared are traded.
- : Initial Public Offering -Select Underwriters ( banks) Comply with regulatory requirements Prepare prospectus and list it on company website. Fix price Create mass media campaigns.
- : No, the company reserves the right to retain the dividend/
- : Investment is made for a long period to gain returns in a longer run. Trading is done a shorter while to gain medium profits.
- : Face Value is a par value, basically a capital value of each stock. Dividend - Dividend is a reward paid to the shareholders from the Net profits. Bonus-offering additional shares to existing shareholders Split-Issuing outstanding shared to existing shareholders to increase number of shares.
- : SENSEX & NIFTY are the average of all Indian shares. Sensex is listed by BSE and NIFTY is listed by NSE.
- : NSE became popular because of their new technologies and chances of fraud are lesser.
