Share Market
Share Market

Share Market Basics

The Bombay Stock Exchange (BSE) is probably the most established exchange over the world, while the National Stock Exchange (NSE) is among the best as far as modernity and what is more, headway of innovation. Click here to know more.

The bonus shares are given to the current shareholders as per their current stake in the company.

When viewed in comparison with the ordinary shares, DVR shares relinquish a major part of voting rights. This means that DVR shares confer much less voting rights than ordinary shares. Click here to know more.

The share buyback is one such strategy that is often adopted by companies with a view towards redemption of their own stock. As the name implies, share buyback is the practice of repurchase or buying back of its own shares by a company.

The intrinsic value of a share refers to an objective valuation of the share i.e. a valuation of the share which gives it a particular monetary strength. In case the intrinsic value of a share is above the market value, the seller is set to gain.

A market order is a purchase or offers order to be executed quickly at the current market prices. However long there are willing vendors and purchasers, market orders are filled.

ETFs can give some degree of diversification. In the same way, as other mutual funds, ETFs give an economical method to rebalance portfolio allocations and to put away money rapidly.

Stock can be purchased and sold as a discreet unit or on stock exchanges, and such transactions are normally intensely managed by governments to prevent misrepresentation, secure investors, and advantage the bigger economy.

Out of the numerous fund related options that we have in India today, ETFs hold a very reputable place.

When it comes to profit-making and returns on investment, all of us wish to receive the best possible deal. We all want that our accrued benefits should keep growing and the incurred costs should be kept at a minimum.

Regardless of whether you can time the market temporarily, to sell and the market goes down further yet, it won't profit you. At the point when you sell you are certain markets will fall much more since you are in a total bearish mind-set.

Investments serve the best interests of the parties involved as the basic framework of any investment decision is rooted in profit-making over a period of time.

To invest money in the share market is assumed to be risky because stock markets are generally considered to be volatile.

If you are an NRI, you can keep both the accounts. But it would be hectic to maintain both the banks at a time. Now that you have got an idea of both of these accounts, it’s your time to decide which one to open!

Markets are prone to changes and the varying degree of changes reflects in the output of a market during different times. There may be times of slump and there may be times of upward trends.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

Primary market is also called the IPO market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

As per the general rule of the stock market, a trader can purchase and sell the shares easily from the secondary market. There’s no time limit of buying and selling and traders can do transactions anytime to make maximum profits.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

The primary market is also called the IPO market.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

Primary market is also called the IPO market.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

Primary market is also called the IPO market.

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

Primary market is also called the IPO market.

Once your stock trading account is opened and activated, then you can use it either for short term trading or for long term investments. Online trading is a platform for share investing in the most efficient manner.

Stock Market Trading normally refers to the short term trading. What is short term trading according to a stock market definition?

Stock market is a place for buyers and sellers of stocks of various companies to come together and find a price where they can make some gain using demat account. Once the price is discovered, then the shares change hands at that price.

Investment, by definition refers to the long term trading. What is long term trading according to an acceptable definition in share market?

In India, share markets are broadly classified into Primary Markets and Secondary Markets. Let us understand the difference between the two.

Primary market is also called the IPO market. Here companies issue shares so as to get listed in the stock market. Primary market raise money through New Offers (fresh issue of shares) or through offer-for-sale (existing shareholders selling their shares)

Secondary market is where listed shares are traded. Once the IPO is completed, shares normally get listed within a period of 10 days. Once the listing is done, then the shares start trading in the secondary markets.

Why do people invest in share markets?

There are 3 reasons people invest in the share markets in India. Here we are referring to the secondary markets in particular.

People invest so that these share values can appreciate and give good returns in the long run. For example an amount of Rs.1 lakh invested in Havells in 1996 would be worth Rs.32 crore today. That is potential to create value that share markets have.

People also invest in share markets to participate in the growth of the Indian economy over a period of time. Unlike bonds, these shares do not assure any returns. But over longer periods of 10-12 years they give above index returns.

People also invest in shares markets for the sake of dividends that are paid out by these companies from their profits. This is also called dividend yield investing.

What is stock exchange?

Stock exchange is a platform for investing in shares. You buy and sell shares in the stock exchange. In the old days you had to go to the ring and execute traders. However, today you can trade on both the stock exchanges (NSE and BSE) using an online trading platform by sitting on your computer. You can also trade using your mobile app. A little more about the 2 stock exchanges in India

Bombay Stock Exchange (BSE) is more than 125 years old and was the first stock exchange in Asia. Today the BSE trades more than 6000 stocks and you can trade equities, currencies, equity futures, index futures, equity options and index options on the BSE platform.

National Stock Exchange (NSE) was set up in 1994 but has become the largest stock exchange in India in terms of volumes. While NSE has much lesser number of shares listed, they were the pioneers in using technology for stock trading. Investors and traders can choose to trade on the BSE or even on the NSE as per their choice and liquidity available.

How does the share market work?

The share market plays 3 important roles to help the investors and the brokers. Brokers are your intermediaries for trading in the share markets. Here are the 3 critical functions that share markets actually perform in India.

Share markets bring buyers and sellers together. When both the buyer and the seller place their orders on the stock exchange, the stock market gives best execution to both. For buyers, execution is at lowest available price and for seller it is done at highest available price.

Stock markets clear trades which is one of the most important functions. Stock exchanges have their own clearing corporations to clear trades which connect with brokers to ensure that credits, debits, delivery are all handled properly.

Stock exchanges manage risk. They impose margins on traders to ensure that no undue risk is taken in the markets. More importantly, stock exchanges (through their clearing corporations) guarantee the trades. Effectively, for every trade, the stock exchanges are the counter party. Therefore, when you deal in stock markets, there is no counterparty risk.

Is stock market different from share market?

Stock markets are share markets are one and the same. In India they were always referred to as the share market. Stock market is a US term where they refer to equity as stocks rather than as shares. Both stocks and shares represent a share of the company ownership.