Share Market

Submitted By : Saikat Das

(Department of BBA, Batch :2017-2020)

University Roll No. : 15205017048

In a market  where buying and selling of share happens. Share define a unit of the company from where you brought it. So, it represent that you are the ownership of the company for some units.  For example, you brought 5shares of Rs. 100 each of CBScompany, then you become a shareholder of CBS company. This allows you to sell CBS share any time you want. If start investing at a young age and stay invested for long time, the rate of return will be high. You can plan your investment strategy based on the time need money.

By buying share, you are investing money in the company. As the company grows, the price of your share too will increase. You can get profit by selling the share in the market. But the company perform bad position then your share price can be decrease. Long term investment will nullify the fall in price.

A company requires capital or money for it expansion, development, etc. and this reason it rises money from public. The process by which company issue share is called Initial public offer (IPO).

In a share market we heard about bull market and bear market. The bull market is one where the price of stocks keep rising and the beer market is where the price keep falling. All of these share buying and selling happens NSE (National stock exchange) and BSE (Bombay stock exchange). These are two stock exchange in India and regulated by SEBI (Securities and Exchange Board of India).In the NSE listed 50 company so it’s called ‘Nifty’ and BSE listed 30 company it’s called ‘Sensex’. Nifty and Sensex represent the performance of share market.

If any company perform bad day by day this company can exclude to the list. Company’s profit growthen company can gives the dividend to its shareholder.

TWO KINDS OF SHARE MARKET:

1.Primary market

2.Secondary market

 

Primary market:

  • A company or government raises money by issuing shares in the primary market by the process of IPO.
  • The issue can be either through public or private placement.

 

Secondary market:

The shares brought in primary market can be sold in the secondary market. Secondary market operates through  over the country (OTC) and exchange traded market. OTC markets are informal markets wherein two parties agree on a particular transaction to be settled in future.

Mutual funds :

It is a collects money from a number of investors who share a common investment objective. Then, it invest the money in bonds, equities, and other security. The income generated from this collective investment is distributed proportionately the investor. Mutual fund is one of the most viable investment options for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

Type of mutual funds-

1.Equityfunds-These invest predominantly in equities i.e. shares of companies.

  1. Bond – These invest in Fixed income securities, like government security, commercial papers ets.
  2. Hybrid funds – These investment in both Equities and Fixed income, Growth potential as well as Income generation.