Stockchomp.com is one of the most popular stock market articles site. Here you will get detail and basic knowledge of share market. In this Post you will get basic knowledge of Indian Share Market and Share. Share
Share is nothing but the Ownership of the company divided into small parts and each part is called as Share or Stock.
It is also called by different names like equity, financial security.
A person carrying a share of a company holds that part of ownership in that company.
A person holding maximum shares carry maximum ownership and designated like director, chairman etc.
Share Market
A Share market is the place where buying and selling of shares takes place.
Now days due to internet and advanced technology there is no need to be physical present in exchanges like NSE and BSE. The buying and selling of shares takes place from anywhere wherever there is a computer with internet connection
One should need the Demat Account, computer and internet connection and he/she can start the share trading or investing.
Index in share market
Index consists of group of shares. Index denotes the direction of the entire market.
Like when people say market is going up or down then that means Index is going up or down.
Index consists of high market capitalization and high liquidity shares.
High Market capitalization shares - Companies having highest number of shares and highest price of each share.
Market capitalization is calculated by multiplying current share price and number of shares in the market.
High Liquidity shares - Shares in the market with high volumes.
Two types of Indices
Nifty and Sensex
Nifty - Nifty consist of a group of 50 shares.
Sensex - Sensex consist of a group of 30 shares.
Stock exchanges
Mainly there are two exchanges in India.
NSE (National stock exchange) - Nifty is listed with NSE.
BSE (Bombay stock exchange) - Sensex is listed with BSE.
NSE and BSE are countries economic barometer.
Stock exchanges like NSE and BSE are the places where the trading of shares takes place.
