Share means part. The market is the place where you can buy and sell. In a literal sense, the stock market is a place to buy and sell a stake in a listed company. There are two major stock exchanges in India called the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
In BSE or NSE, shares of a listed company are bought and sold through a broker. In the stock market, however, bonds, mutual funds, and derivatives are also traded.
What does it mean to buy shares?
Suppose a company listed in the NSE has issued a total of 10 lakh shares. According to the proposal of that company, the number of shares you buy, you own that share in that company. The number of shares to be given to a person or group at the time the company issues shares is up to its discretion. To buy/sell shares from the stock market, you have to take the help of a broker. The value of shares of a listed company is recorded in BSE / NSE. The value of the shares of all listed companies fluctuates according to their profit-making potential. All the stock markets are controlled by the Securities and Exchange Board of India (SEBI or SEBI).
How does a company get listed in BSE / NSE?
To get listed in the stock market, the company has to enter into a written agreement with the stock market. After this, the company submits all its necessary documents to the capital market regulator SEBI. After this, the company keeps giving information about its activities to the stock market from time to time. These specifically include such information, which affects the interests of investors.
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