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2. • Stock market and share market essentially mean the same
thing. Both terms describe an exchange in which buyers and
sellers of stock or shares may trade in a market with high
liquidity
Is the Stock Market and Share
Market same?
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3. Share:
e
• Share is a unit issued by a company at the
time of raising fund from the market. It is a
certificate issued to a person who applies for it
and is given at a value predetermined by the
company.
• It is the smallest unit of ownership that may be
bought or sold on or off an exchange.
Stock:
• Stocks in the reference of stock market are th
total number of shares a person has in one
company or in many companies.
Stock & Share Tips
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4. • Stock market is an organised market, where
securities of govt, semi govt bodies and
corporate enterprises are brought or sold.
• It is established for the purpose of assisting,
regulating and controlling business in buying
selling and dealing in securities.
• In the stock market only those securities listed
in the stock exchange are transacted.
• Individuals alone can buy and sell securities.
Stock Market
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5. 1. Primary Market:
• The first group of investors to whom a new issue
of a security is sold.
• The primary market consists of the issuer and the
first buyers of the issue.
• The primary market can be a time more volatile
than the secondary market because it is difficult to
determine the underlying value of new issues.
2. Secondary Market:
• A market where investors purchase securities or
assets from other investors, rather than from
issuing companies themselves.
• The national exchanges - such as the New York
Stock Exchange and the NASDAQ are
secondary markets.
Types of Stock Market
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6. er
BLUE CHIP :
• The blue chips carry the highest value.
• Large, established firms with a long record of profit growth, dividend
payout and a reputation for quality management, products and
services are referred to as Blue Chip companies and their stocks are
Blue Chip stocks.
PENNY :
• Penny stocks are low-priced, speculative stocks that are very risky.
• These stocks are generally issued by the type of companies with a
short or erratic history of revenues and earnings.
INCOME :
• Income stocks are stocks that pay higher-than-average dividends ov
a sustained period.
• These above average dividends tend to be paid by large, established
companies with stable earnings.
VALUE :
• A value stock is a type of stock that is currently selling at a low price.
• Companies that have good earnings and growth potential but whose
stock prices do not reflect this are considered value companies.
• Investors who buy value stocks believe that these stocks are only
temporarily out of favour and will soon experience great growth.
Types of Stocks
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7. Procedure for listing in Stock Exchanges
1. Company decide to go public and raise fund from the
market and decide upon the Total amount to be raised
from the Market.
2. They get clarification from SEBI.
3. This amount is broken down in number of shares by
deciding the Face Value. As per the norms of the SEBI
the FV is to be multiple of 5. Normal practice is keeping
this at Rs10.
4. Then the No of shares to be introduced in the Market is
decided.
5. Depending upon the response of the Stock as IPO,
when it is opened on Secondary Market the price is
decided.
6. The combined collection of the firm from IPO and
Secondary Market operations becomes the Market
Capitalisation of the firm, from which a share of
Profitability is distributed among the share holders in the
WefoarmlotfhDividRendesearch

8. Market Capitalization
• Market capitalization is often called as market
cap is a measurement of the size of a business
enterprise.
• It is the total dollar market value of all of a
company's outstanding shares calculated by
multiplying a company's shares outstanding
by the current market price of one share.
• The companies were divided into large-cap, mid-
cap, and small-cap based on the size of market
capitalization.
Large-cap: $10 billion–$100 billion.
Mid-cap: $1 billion–$10 billion.
Small-cap: $100 million–$1 billion.
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9. Bombay Stock Exchange
Type Stock Exchange
Location Mumbai, India
Founded 1875
Owner Bombay Stock ExchangeLimited
Key people Madhu Kannan (CEO & MD)
Currency Indian rupee
No. of listings 5,085
Market Cap US$1.8 trillion (Dec 2010)
Volume US$231 billion (Nov 2010)
Indexes
BSE SENSEX
BSE Small Cap
BSE Mid-Cap
BSE 500
Website www.bseindia.com

10. National Stock Exchange
Type Stock Exchange
Location Mumbai, India
Founded 1992
Owner
National Stock Exchange of
India Limited
Key people Ravi Narain (MD)
Currency Indian rupee
No. of listings 1,552
Market Cap US$1.59 trillion (Dec 2010)
Indexes
S&P CNX Nifty
CNX Nifty Junior
S&P CNX 500
Website www.nse-india.com

11. The stock market indexes are useful in a number of
ways to stock investors:
1. The market indexes provide an historical perspective
of stock market performance.
1. It provide a yardstick with which investors can
compare the performance of their individual stock
portfolios.
1. It acts as a forecasting tool. Studying the historical
performance of the stock market indexes, investors
can forecast trends in the market
Importance Of Indices
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