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.