Stock Market Dbq

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FAQ ABOUT STOCK MARKET
WHY DO WE INVEST IN STOCK MARKET?
Basically earning and saving is insufficient in today’s world. We have to ensure for enough funds to be arrange for the future development. Expansion of your business in today’s price increasing world will eats into the estimation of your money. To compensate loss through inflation, we contribute in stock market to gain extra amount. The share trading system is one such venture fundament but easy to earn extra money.
Earlier in 1800’s, stockbrokers do the direct exchanges of stocks under the Banyan trees. As the quantity of the brokers was expanded, they just had no real option they just migrating from one place to another. At long last in 1854, they moved to Dalal Street, which was the …show more content…

WHAT IS SHARE MARKET?
A Share Market which is like a Stock Market. The key contrast is that a stock market offers you some assistance with financial purposes like securities, bonds, mutual funds, etc. A Share market just permits exchanging/trading of shares. A Share Market is a place where the shares are either issued or exchanged.
Stock Exchange is the fundamental stage that gives the facilities used to trade the company stocks and other mutual funds or bond which is related to company. Either you can buy or sell the stock only when it is listed on an exchange. India's top stock exchanges are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). That is the place where the stock buyers and sellers can meet.
THERE ARE TWO KINDS OF SHARE MARKETS – PRIMARY AND SECONDARY MARKETS.
Primary Market:
Here the company gets register to issue the share amount and raise money of each share. This is additionally called getting listed in a stock exchange. A firm enters in primary markets is to raise the capital amount. For the first time the company selling the shares then, it is called an Initial Public Offering …show more content…

Owning a share is much the same as holding a part of the company (i.e)., you also a one of investors in the company. These shares are then traded in the share market. If the project gets completed you will get a part of share from the profit.

Shares are in this manner, a declaration of responsibility for company. In this way, as a stockholder, your share benefits the company. As the company continues improving, your stocks will increment in quality.

Mutual Funds:

These are investment that permits you to in an indirect way put invest into stocks or bonds. Each mutual fund plan issues units, which have a certain value quite related to share. When you contribute, you consequently turn into a unit-holder. At the point when the instruments that the MF plans invest into profit, as a unit-holder you also get your share.

Derivatives:

The value of shares keeps unpredictable then it is difficult to fix a particular price. Here the derivatives instruments that help you trade in the today’s price for the future purpose. Simply mention in an agreement to either buy or sell a share or other instrument at a certain price which was fixed earlier.
WHAT DOES THE SEBI (Securities and Exchange Board of India)

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