Stock mkt

Stock mkt is a place where an individual can participate in the mkt by trading for the purpose of both investing and trading.

This gives an opportunity for even a retail participation ( one who has very small capital)

• What is stock market?: A place where transaction of stocks takes places( Secondary mkt)
• Why do we need stock market?: Exchange of stock ( buy and sell) can take place
• What are the similarities and differences from other markets?: Store/Hotel/Car rental. A place where any type of transactions(exchange of product/service) takes place. whereas in stock market no physical product exists( stock is exchnaged)
• What is SEBI and its role?: Regulatory body for securities and commodity market in India
• Who are share holder, promoter, and director? : Shareholder(Owner), One who started the company, Partners in the company
• What is the difference between primary market and secondary market?: Direct interaction btw company, investors(huge capital), customers where as in secondary mkt stocks are bought and sold.
• What is IPO? What is the process of applying for IPO?: Initial Public offer- A company to raise capital from the market(public) through public issue
• Can share holder has right to ask for refund / can he ask for dividends?: Yes becoz he had bought a share in the company which makes his a partner. If the company is making profit- shareholders can ask for dividends
• What are the differences between investments and trading?: Long term and short term. Low and High Risk Totally depends upon the personality of an individual
• What is Face Value, Dividend, Bonus and Split? : FV- The basic price given to a stock D- Is the proportion of the profit earned by the company guided by the no of stocks owned
• What is SENSEX and NIFTY?: SENSEX- Avg performance of top 30 companies listed in BSE. NIFTY- Avg performance of Top 50 companies listed in NSE
• How come NSE become popular than BSE?: - Early use of technology - More liquidity ( buyers and sellers)