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Share Market

Terminology –

Share – A portion of the equity of a company is called a share.

Dividend – A portion of the profit of a company which is distributed proportional to the shareholding of a person is called dividend.

Security – Securities are of many types e.g. debenture, bond, security of a bank loan etc.

Bond – Bond means a debt certificate which is issued by an institution which takes the debt.

Mutual Fund – This fund collects money from the public and invests it in better opportunities.

Blue Chip – This term is used for shares of strong companies.

Bulls – Those brokers or people who buy shares in the hope of increase of prices are called bulls. Their activities lead to rise in share prices.

Bears – Those brokers or people who sell chares in the hope of fall in prices are called bears. Their activities lead to a fall in share prices.

Markets for trading in shares and securities are called stock exchanges. India has 24 stock exchanges. Oldest is Bombay stock exchange (BSE) which is also the oldest in Area. It was established in 1875 as Native share and stock broker association. BSE started on-line trading in 1995. The main sensitive index of BSE is called SENSEX. National Stock Exchange (NSE) was established in 1993 on the recommendation of Pherwani Committee. Its main sensitive index is called NIFTY, which is based on share prices of 50 companies and its base year is 1995.