The Primary Market is where the shares are opened initially to the public and the Secondary Market is where the said stocks of various listed companies are traded in the Stock Exchange. The Stock Exchange is a place where
sellers and buyers come together to sell and buy stocks. There are two stock exchanges in India : Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Securities and Exchange Board of India SEBI) is the market regulator to oversee the activities made by the traders, brokers, etc. in the Stock Exchanges. NIFTY is the collection of the top 50 companies listed on the NSE and SENSEX is the collection of top 30 stocks listed on BSE by market capitalisation. Investors invest their money for long term gains or Investment. Investors also invest their money for short term gains or trading.
The Companies issue Initial Public Offer (IPO) to involve public as share holders in the Company. Face Value is the original price of the share mentioned in the share certificate. Dividend is the distribution of cash to the share holders on the face value of the share. Bonus shares are issued by the Company to the current share holder on the basis of ratio and the share held. Shares are split where the no. of shares increase and the face value of the share decreases.

  • : Stock Market is the place where buyers and sellers of stocks trade the shares.
  • : We need stock market to buy and sell shares, exchange or transfer the shares.
  • : In India there are two Stock Exchanges - National Stock Exchange and Bombay Stock Exchange. Here the stocks (product) are traded virtually through brokers' website. In conventional markets we buy and sell the products physically and directly - like vegetables, groceries, cotton, etc. In both the markets, there are buyers and sellers.
  • : SEBI is the Securities and Exchange Board of India. It is the regulatory body for the National Stock Exchange and Bombay Stock Exchange to protect the interest of the investors.
  • : Share Holder: An individual or Company who /which owns atleast one share of the Company. Promoter: An individual responsible for formation of Company and solicits people to invest in the Company. Director: An individual appointed by the share holders to run the company.
  • : In Primary Market the Company sells new stocks to the Public - Eg. IPO Secondary Market is the place where the shares are traded by the investors. Eg. Bombay Stock Exchange and National Stock Exchange
  • : IPO - Initial Public Offering Paytm IPO - Face Value - Re.1/- Issue Value : Rs.18300 crores IPO Price:Rs.2080/- to Rs.2150/- per share IPO opening Date: 8.11.2021 IPO Closing Date: 10.11.2021 Subscription Status : 1.89 times
  • : The Share Holder does not have the right to ask for refund and dividend because as a share holder he becomes part owner of the company. He can only sell the shares in the market.
  • : Investment focuses on long term profit. Trading focuses on short term profit. Investment - Eg. Government Bonds, Real Estate, Long term investment in shares. Trading - Eg. Investments made for short duration.
  • : Face Value is the original price of a share as mentioned in the share certificate. Eg.Rs.1000 by each shareholder comprising of 100 share holders, the face value is Rs.10. Split: Dividing one share into two or more shares is Split. Eg. If Market value of a share is Rs.1000 and Face value is Rs.10 and if the share is split into two, the market value of the share will become Rs.500/- and face value will reduce to Rs.5/-. Dividend is distribution of cash to the shareholders on face value of the share. Bonus : These are additional shares given to the current shareholders without any additional cost.
  • : SENSEX and NIFTY are stock market indices. NIFTY consists of top 50 companies in India. It is an index that represents the average of 50 of the top companies listed on the National Stock Exchange. SENSEX is the benchmark index of the Bombay Stock Exchange in India. It represents the 30 stocks of the largest, financially sound companies listed on the BSE.
  • : NSE is popular than BSE because NSE has more trading volume and liquidity. NSE owner: Various domestic and global financial institutions, public and privately owned entities and individuals. NSE Chairperson: Girish Chandra Chaturvedi NSE MD & CEO: Vikram Limaye NSE No. of Listings: 2002 BSE - Established in 1875 by Cotton Merchant Premchand Roychand BSE Chairman : Vikramajit Sen BSE MD & CEO : Ashish Chauhan No. of listings: 5439

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