There are two main stock exchanges in India: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) l Bombay Stock Exchange Dalal Street, Mumbai, Maharashtra, India is an Indian stock exchange. Established in 1875, BSE is Asia's first stock exchange; Bombay Stock Exchange calculates the fluctuations in the market value of 30 large companies. Second Stock Exchange NSE is also in Mumbai and it was established in 1992. For information like Stock Market Basics and the main terms used in the stock market are as follows:
1. Equity Share: Equity shares are those shares which are franchised by the company. These shareholders are owned by the company in proportion to the holdings of the shares, and they do not have any liability in dividend distribution.
2. Preference share: These are share holders, which are preferred in dividend distribution. After dividing dividends, if some dividends remain, then it is divided into equity shareholders. Share holders of preference shares are eligible for company franchise Is not received
3. Initial Public Offer (IPO): It is related to the primary market in which the shares of new companies are issued in the market. Through this method, companies mobilize money from the market and make their further financial plans.
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4. False Public Offer: When any new company issues its authorized capital with the primary market, it is called FPO.
5. Blue Chip Company: It is a company whose shares are considered very safe to buy. The investor purchasing shares of this company receives a risk-free benefit.
6. Insider Trading: This means that information is related to the working system of a company, which contains information about the future plans of the company. If this information is notified by the company's superior Directors and high level officials), the prices of that company's shares are unexpectedly up or down.
7. Commercial Paper: This is a promissory note which is issued by a financial institution. The main objective of issuing this is to fulfill the short-term financial needs.
8. Bonus Issue: This type of share bonus is given to those share holders in free of proportion to which they have shares of that company already. Such shares are also called dividend shares.
9. Bull: bullion is called the person who buys shares in the stock market and due to this purchase, the stock market goes upwards. This investor has a positive attitude about the market because he thinks That the price of the shares bought by him will rise up.
10. Bear: The beard is called the investor who sells the shares he bought because he thinks the price of the shares bought by him will fall into the market, so he sells his shares and by many people When this happens the market falls downwards.
11. Dividend: This is part of the profit given by the company to its share holders. This part of the profits divides the shares in the ratio of the number of shares to the shareholders of the company. The more the share, the more it is Get dividend.
12. Hot Money: It is an investment money that grows like a profit. This type of investment is very stable in the money market, which is why it is called Hot Money.
13. Junk Bond: Junk bonds are bonds whose ratings are low, but the rate of return on them is high.
14. Kerb Trading: Outside the stock exchange market building, illegal trading in securities at the same time or after the stock exchange is called curb trading.
15. Stag: Such people who prefer to invest in primary market, not in secondary market, are called stag l. These people take very little risk.
16. Alpha Share: These are also called shares of Group A. These are stocks which do not interfere with the sale of the sale.
17. Right Issue: When the current share holders are given priority in the allotment of shares or securities, such shares are called right issues. Current share holders have to pay rupees to buy these shares ie these Shares are not free of cost like bonus shares.
18. Snow Baling Effect: When the price of shares increases slightly due to share purchase or for some other reason, the value of the stocks increases and so much that if the stop order on the purchase sale starts coming, then Snow baling says
19. Short Selling: When a person or a broker sells more stocks than he has or is able to fulfill from anywhere, this action is absolutely illegal.
The Information about Stock Market for Beginners
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