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Showing posts with the label Terms in Stock Market

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Share : Any business has a lot of assets: The machinery, buildings, furniture, stock-in-trade, cash, etc. It will also have liabilities like Bank loans, money owed to people from whom things have been bought on credit, are examples of liabilities. Assets - Liabilities = Capital. Capital is the amount that the owner has in the business. As the business grows and makes profits, it adds to its capital. This capital is subdivided into shares (or stocks). So if a company's capital is Rs 10 crore (Rs 100 million), that could be divided into 1 crore (10 million) shares of Rs 10 each.Part of this capital, or some of the shares, is held by the people who started the business, called the promoters. The other shares are held by investors. These investors could be people like you and me or mutual funds and other institutional investors. owning a share means that you own a share of the company's profits,liabilities,assets,its losses. If the company has divided its capital into shares of Rs ...

Basic Terms to know when Investing

Sensex : It is an index that represents the direction of the companies that are traded on the Bombay Stock Exchange, BSE. The word Sensex comes from sensitive index. click here to get the list of 30 sensex stocks which comes from the sectors like ACC (cement), Bajaj Auto, Tata Motors, Maruti (automobile), Infosys, Wipro, TCS (information technology), ONGC, Reliance (oil & gas), ITC, HLL (fast moving consumer goods) etc. Nifty : It is the Sensex's counterpart on the National Stock Exchnage, NSE. The only difference between the two indices (the Sensex and Nifty) is that the Nifty comprises of 50 companies and hence is more broad-based than the Sensex. Sensex is the benchmark that represents Indian equity markets globally. The Nifty 50 or the S&P CNX Nifty as the index is officially called has all the 30 Sensex stocks. Bull : A bull buys a company's share at Rs 100, s/he would prefer selling the same stock at Rs 120 or any price higher than Rs 100 to make a profit. Bulls ...