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What Is Stock Market/Share Market?

A stock market or share market is a cluster of buyers and sellers of stocks (also called shares). These may include securities listed on a public stock exchange, as well as stock that is only traded privately.

What Is Stock Market/Share Market?

Stock markets area unit primarily meeting places for corporations and investors from everywhere the planet.
Companies want the markets to boost capital, whereas investors use them to realize monetary goals, like building a nest egg for retirement.
Using online brokers and financial websites, you can research and trade stocks at reasonable cost from the comfort of your home. You can also hold stocks indirectly through professionally managed mutual funds. The stock market is an exchange that allows people to buy and sell stocks and companies to issue stocks. A stock represents the company’s equity, and shares are pieces of the company.
When people talk about buying and selling the stock, they mean that they’ve bought or sold one or more shares of a particular stock. The purpose of the trader is to make money.
The most basic thought of the securities market is that the concept every share of stock represents atiny low portion of possession of an organization.
While most businesses are founded by small groups of people, when a company "goes public" its owners decide to sell shares of stock and, in turn, receive cash from buyers. A company may have thousands of investors, but each one has the right to profit from the company's success and each runs the risk of losing money if the company performs poorly. Stockholders receive updates from the company and can vote for board members to influence the business's activities.

Primary Market


The market system where the promoter of the company sells shares for the first time to the public.


Primary Market

The market system where the promoter of the company sells shares for the first time to the public.

(IPO) Intial Public Offering


Initial Public offer is the process of selling the shares of the company from the primary or the initial owner to the public.

(IPO) Intial Public Offering

Initial public offer is the process by which a private company can go public by sale of its stocks to the general public.
It might be a brand new, young company or an old company which decides to be listed on an exchange and hence goes public.
Companies will raise equity capital with the assistance of associate commerce by supplying new shares to the general public or the prevailing shareholders will sell their shares to the general public while not raising any fresh capital.
A company giving its shares to the general public isn't duty-bound to repay the capital to public investors.
The company that offers its shares, known as an 'issuer', does so with the help of investment banks.
After IPO, the company's shares are listed in the associate open market.
Those shares are often additional sold-out by investors through secondary market commercialism.
When a corporation starts the commerce method, a selected set of events happens.
The chosen underwriters facilitate these steps.
1. An external initial public offering team is formed, comprising underwriters, lawyers, certified public accountants, and the Securities and Exchange Commission (SEC) experts.
2. Information regarding the company is compiled, including financial performance and expected future operations. This becomes part of the company prospectus, which is circulated for review after it has been prepared.
3. The financial statements are audited, and opinion is generated.
4. The company files its prospectus and required forms with the SEC and sets a date for the offering.

Secondary Market

The market system where the trading of Equity share of a company takes place the Second time, earlier in primary markets the seller was the Promoter of the company nowhere the seller, as well as the buyer, are investors as now the owner of the share is in public’s domain.

Secondary Market

The market system where the trading of Equity share of a company takes place the Second time, earlier in primary markets the seller was the Promoter of the company nowhere the seller, as well as the buyer, are investors as now the owner of the share is in public’s domain.

(FPO) Follow On Public Offering


Follow on public offer. Publicly listed company can offer additional shares. For the company which is already listed through IPO on the exchange.

(FPO) Follow On Public Offering

FPO is a process by which a company, which is already listed on an exchange, issues new shares to the investors or the existing shareholders, usually the promoters. FPO is used by companies to diversify their equity base. A company uses FPO after it has gone through the process of an IPO and decides to make more of its shares available to the public or to raise capital to expand or pay off debt.
Two Types of Follow-On Public Offers
1. The first is dilutive to investors, as the company’s Board of Directors agrees to increase the share float level or the number of shares available. This kind of follow-on public offering seeks to raise money to reduce debt or expand the business. Resulting is an increase in the number of shares outstanding.
2. The other type of follow-on public offer is non-dilutive. This approach is useful when directors or substantial shareholders sell off privately held shares. With a non-dilutive offer, all shares sold are already in existence. Commonly referred to as a secondary market offering, there is no benefit to the company or current shareholders.
Companies announcing secondary offerings may see their share price fall as a result. Shareholders often react negatively to secondary offerings because they dilute existing shares and many are introduced below market prices.

Stock Exchange


A Stock Exchange is a place where stockbrokers and traders can buy or sell the share, bonds, and other securities. India has two stock exchange Bombay Stock Exchange (BSE), and National Stock Exchange (NSE).

Stock Exchange

It is a place where shares of public listed companies are traded. The primary market is wherever firms float shares to the final public in Associate in Nursing initial public giving (IPO) to lift capital.
An Organized and controlled money market wherever securities (bonds, notes, shares) square measure bought and sold-out at costs ruled by the forces of demand and provide.
(1) primary markets wherever firms, governments, municipalities, and other incorporated bodies can raise capital by channeling savings of the investors into productive ventures
(2) secondary markets where investors can sell their securities to different investors for money, so reducing the danger of investment and maintaining liquidity within the system.
Trades in the older exchanges are conducted on the floor of the exchange itself, by shouting orders and instructions. On trendy exchanges, trades are conducted over telephone or online.
Almost all exchanges square measure 'auction exchanges' wherever consumers enter competitive bids and sellers enter competitive orders through a commerce day.

Bombay Stock Exchange (BSE)

BSE was established in 1875 Asia's 1st stock exchange located at Dalal Street, Mumbai. BSE is the 1st and largest securities market in India and 10th biggest stock exchange in the world by market cap of 150,184.87 billion (the US $ 2.1 trillion) with 5,439 No. of listings (April 2018).

Bombay Stock Exchange (BSE)

The city exchange was based by Premchand Roychand.
He was additionally the founding father of the Native Share and Stock Brokers Association, an establishment that's currently called the bovine spongiform encephalitis.
While bovine spongiform encephalitis Ltd is currently substitutable with Dalal Street, it absolutely was not forever thus.
The first venue of the earliest stock broker meetings in the 1850s was in rather natural environs—under banyan trees—in front of the Town Hall, where Horniman Circle is now situated.
A decade later, the brokers moved their venue to a different set of foliage, now below banyan trees at the junction of Meadows Street and what's currently referred to as Mahatma Gandhi Road.
As the variety of brokers enhanced, they'd to shift from place to put, however they forever overflowed to the streets.
At last, in 1874, the brokers found a permanent place, and one that they may, quite literally, call their own. The new place was, aptly, referred to as Dalal Street (Brokers' Street).

National Stock Exchange (NSE)

National Stock Exchange (NSE) was established in 1992 as the first demutualized electronic exchange in India at Mumbai. NSE is the 11th largest stock exchange in the world by market cap of US$2.27 trillion with 1,952 No. of listings (April 2018).

National Stock Exchange (NSE)

The National stock market of India|Bharat|Asian country|Asian nation} restricted (NSE) is that the leading stock market of India, set in urban center.
The NSE was established in 1992 because the initial demutualized electronic exchange within the country.
NSE was the primary exchange within the country to produce a contemporary, absolutely machine-driven screen-based electronic commerce system that offered the straightforward commerce facility to the investors unfoldacross the length and breadth of the country.
Vikram Limaye is director & Chief military officer of NSE.
National Stock Exchange has a total market capitalization of more than US$2.27 trillion NSE's flagship index, the NIFTY 50, the 50 stock index is used extensively by investors in India and round the world as a measuring system of the national capital markets.
Nifty 50 indexes were launched in 1996 by the NSE.[2] However, Vaidyanathan (2016) estimates that only about 4% of the Indian economy / GDP is actually derived from the stock exchanges in India

Index

A stock index or stock market index is an indicator or measure of selected stocks of the stock market. An index represents stock according to its category such as nifty 50 represents the top 50 trading stocks in market.

Index

A stock index is used to describe the performance of the stock market or a specific portion of it, and to compare returns of investments. Generally, an index uses a weighted average of stock prices, so larger companies count more in the calculation. The NIFTY50, BANKNIFTY, and SENSEX are examples of stock indexes. When we talk about the Indian stock market, Sensex and Nifty are the most commonly used words.

Types Of Stock Indexes

1. Some stock indexes simply represent the performance of a certain country or the entire world's stock market. For example, the NIFTY50 is designed to show how the stocks of large Indian companies are performing as a whole.
2. Other indexes are meant to track certain types of stocks growth stocks, value stocks, small-cap stocks, etc. The NIFTY MIDCAP 50 index, for instance, includes 50 companies selected from the NSE of MIDCAP SHARES.
3. There are also stock indexes indented to track the performance of a certain sector. The NIFTY FIN SERVICE index includes banks, insurance companies, and NBFCs from the NSE.

Sensex

Sensex is a stock market index of Bombay stock exchange (BSE) representing 30 financially well-established companies which are the largest and most actively traded stocks in the Indian economy.

Sensex

Sensex or Sensitive Index represents the free float of the market-weighted stock market index of the top 30 stocks that are well established and listed on the Bombay Stock Exchange (BSE). Sensex acts as a barometer of Bombay Stock Exchange which drives the market sentiment. It gives a general idea of the majority of stocks that have either gone up or down. Like for example, if the Sensex is up, there are good chances that the majority of stocks part of BSE will be up.

Nifty 50

Nifty is a stock market index of National stock exchange (NSE) representing 50 financially well-established companies which are the largest and most actively traded stocks in the Indian economy.

Nifty 50

On 21st April the National Stock Exchange of India introduced an equity benchmark known as Nifty. The term Nifty is derived from two words; National and Fifty. Nifty 50 consists of 50 stocks traded on the exchange. These 50 stocks represent the 12 different sectors of the economy.
The Nifty 50 serves many purposes like benchmarking fund portfolios, index funds, and index-based derivatives. NSE Indices Limited (formerly known as India Index Services & Products Limited), owns and manages Nifty 50. Nifty 50 is the core product of NSE indices.

Intraday Trading

Intraday trading involves buying and selling stocks in a trading session which means on the same day. If the trader does not square off the position by the end of the day the position automatically gets squared off.

Intraday Trading

Investment in share market becomes a very attractive source of investment these days. The index is growing very fastly and investors are getting a huge return. The returns on Long term investments in the stock market are higher than those on investments held in other markets.
The money can possible to grow a lot of if it's endowed within the stock exchange then gold or property.
Day Trading in the stock market is another way of Getting better returns on small investments.
Day mercantilism means that not holding on to your stock positions on the far side the present mercantilism day.
It also means taking a position in the markets with a view of squaring that position before the end of that day.

Benefit Of Intraday Trading


No overnight risk. Intraday trading allows to short sell the shares. The brokerage for intraday trading is lower. Increased Leverage more buying power.

Benefit Of Intraday Trading

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Short Term Trading


When the duration between buying and selling of the stocks in within a few days to few weeks it is called Short Term Trading.

Short Term

When the duration between buying and selling ranges from a few days to a few weeks, it is considered as short-term trading.
Faster means that of constructing money: the advantages of a trade is completed in a very short amount through this methodology.
Short-term risk: If you discover that a wrong call was taken on a trade, you can free up the capital invested and reinvest it in fresh stocks.
This is as a result of capital is in danger for a shorter amount.

Long Term Trading


When the duration between buying and selling of the stocks in within a few weeks to few months it is called Long Term Trading.

Long Term

When the length between shopping for and commerce ranges among many months to many years, it's brought up as long commercialism.
There is no ought to perpetually follow the market once commercialism long.
You can ignore the present market conditions and specialize in future market conditions.
Put simply, you don’t need to babysit your stock.
You can dedicate the time saved from perpetually following the market on alternative productive activities.
You can study alternative stocks and do a thorough analysis before creating shopping for or commerce choices.
Long-term commercialism helps you're taking advantage of the ability to change of integrity.
You will be able to invest the dividends back in the market to earn more profit. Long-term trading also helps you save taxes.
Most short traders ought to pay around 20%-30% whereas long commercialism activities area unit charged f solely at 5%-15%.