What Is Share Market?
A share market is a place where shares are bought and sold.
Why do we Invest In Share Market?
In order to beat inflation rate and to give our investment a good return, we invest in Share Market.
Types of Share Market
There are 2 types of Share Market –
- Primary Market – Where a company is getting listed in a stock exhange to raise funds, And the company is selling its shares first time thorugh IPO.
- Secondary Market – Once shares are issued in Primary Market through IPO , they can be bough and sold further through Secondary Market.
How to invest in Share Market
An investor need to open a Trading and Demat Account to invest in Share Market.
What is the difference between a trading account and demat account?
Trading account is used for buy or sell the shares. Demat account is used for keeping the shares in electronic form.
What Are The Financial Instruments Traded In A Stock Market?
This includes Bonds, ETF ( Exchange Traded Fund), Mutual Fund units, Stocks and Derivatives.
What Does The SEBI Do?
The Securities and Exchange Board of India is the regulator for the securities market in India.
The primary objective of SEBI is to promote healthy and orderly growth of the securities market and secure investor protection. Click here to know more about SEBI
How Does Share Market Work?
Companies are listed on Exchanges (NSE or BSE) and Exchanges facilitate trading of shares of listed companies through Brokers. Whenever share price of buyer and seller is fixed trade gets complete.
How Your Order Is Processed?
Whenever a trade is complete; buyer of share is obliged to pay money and seller of shares is obliged to give shares. This process is called Settlement Cycle and gets complete is T+2 Days. For Example – Trade done on Monday will be settled by Wednesday Noon. (Considering all days are as Trading and Settlement Days).
What are stock symbols?
A stock symbol is a unique code given by exchanges to all listed companies. For Example : SBIN stands for State Bank Of India and LT represent to Larsen & Toubro Limited.
What is Stock Price?
The price which a investor pays to buy one share of company.
What is High Price?
Highest Price of the trading day for a particular share.
What is Low Price?
Lowest Price of the trading day for a particular share.
What is LTP (Last Traded Price)?
The price on which last trade was made.
What is Closing Price?
Closing price of the day for a particular stock.
What is Net change?
Net change represents the price difference between last trading day closing and current price.
What is 52-week high/low?
The highest and lowest price of a share in a year or 52 weeks.
What is Volume?
The number of shares being traded or changed hands.
What is dividend?
The shareholders who holds the stocks for a company often receive a part of profit by company. This is called dividend.
What Is Market Capitalization?
Market Capitalization of a company can be calculated by multiplying the market stock price with total number of shares held by the public. For Example – Market Capitalization of a company having share price as Rs. 100 and total number of shares issued in the market as 2 Crore will be Rs. 200 Crore.
What is a Index?
An index is a benchmark or representation of a group of companies that are put together on the basis of certain similarity. This classification of the companies may be on the basis of industry, sector, market capitalization etc. There are sectoral indices like BSE Bankex and CNX IT. Market capitalization-based indices like the BSE Smallcap and BSE Midcap.
What is BSE?
BSE Ltd, the first ever stock exchange in Asia established in 1875, BSE is India’s leading exchange group. BSE’s popular equity index – the S&P BSE SENSEX – is India’s most widely tracked stock market benchmark index and office is situated at Dalal Street, Mumbai. Click here to know more about BSE
What is NSE?
The National Stock Exchange was incorporated in November 1992 and is the leading stock exchange in India. With the purpose to improve the financial well-being of people, NSE- Corporate office is situated in Bandra East, Mumbai. Click here to know more about NSE
What is Sensex?
Sensex is a group of top 30 companies listed in Bombay Stock Exchange (BSE).
What is NIFTY?
Nifty is a group of top 50 companies listed in National Stock Exchange (NSE).
Who are International Indices?
As we have Sensex and Nifty here in Indian Stock Market. Similarly – NASDAQ and DOW Jones in America, FTSE a blue-chip stocks listed on the London Stock Exchange, NIKKEI in Japan etc.
What Is Fundamental Analysis?
Fundamental Analysis is a process to predict the future of any company by analysing revenues, earnings, profit and loss statement, balance sheet etc. Mostly long term investors prefer fundamental analysis of a company before investing.
What Is Technical Analysis?
Technical Analysis is often used by short-term investors and traders, who mostly studies the trends like share prices charts, supply and demand for the stock etc. DMA (Daily Moving Averages), RSI (Relative Strength Indices) etc are the measures of Technical Analysis.
What Is Short-Selling?
Selling a share without having it.
What Are Circuit Filters And Trading Bands?
To keep investor’s money safe and to control volatility of high volatile shares, SEBI has specified the maximum limit the price of a stock can move on a given day. This upper and lower range of that price is defined as Upper Circuit Limit and Lower Circuit Limit. This is also referred as Trading Band.
What Is Bull Market?
Bull Market can be defined as Strong or Favorable Market with majority of buyers.
What is Bear Market?
Bear Market is weak or downward market with majority of sellers.
What Is Margin Trading?
Margin Trading is like buying shares on credit, where trader is using the funds borrowed from broker to to buy the shares.
What Is Mahurat Trading?
It is a special trading session of one hour on the auspicious occasion of Diwali.
What Is Stock Volatility?
Price fluctuation of the stock can be referred as stock volatility.
What Is Insider Trading?
Trading is mostly done on information that is available to the market. When trading is doing on the basis of information that is not known or available to the market is called Insider Trading. This is mostly done by corporate officers, directors, or employees of the company which is illegal.