Stock market

Origin
Bombay stock exchange is the asia oldest stock market it is started in 1885 by 5
member in the Bombay and in 1990 the national stock exchange is started
NSE (national stock exchange) is the first Indian stock market who is used the
computer to buy and sell the stocks

Meaning of stock exchange

Stock exchange is a platform by which any person can bye and sell share
throught it
It act like a medium between buyers and seller and providing a safe platform

Meaning of share
Share is an ownership of a company
It is a part of company
Company issue share to raise money from the investors and genral public
They sell ownership of company to raise the fund
After raising the fund company use that fund on the project for the
maximisation of profit

Types of share
1. Equity share
2. Preference share

Meaning of equity share

Equity share is a type of share by which company sell their ownership
And raise money from it
There was no fixed % on the share
Profit is divided as a form of share
If BOD don’t want to give dividend they are free to do it
If you own 51% of share then you are the owner of that company
2 Preference share
Preference share are those share which company issue to raise
money from the genral public
The preference share hold got priority on the profit
It is like a loan by not completely loan
In the case of binding up of the company the preference
share holder get money first then the equity share holder
The fixed amount of dividend is given to the preference share
holders
Issue of share
If company issue the share there was 3 conditon which is
happen
Issue at par
Issue at premium
Issue at discount
1. Issue at par
In the case of issue at par the share is issued at the book
value
2. Issue at premium
In the case of premium the share is issued above the book value
3. Issue at discount : below the book value
Types of activity in the business
In business there was 3 types of activity which is performed
1. Financing activity
2. Operating activity
3. Investing activity

1. Financing activity . Finance is the blood line of every business

In the financing activity company need money to start that project
or business
Finance = Source of fund
There was many source of fund to raise the fund for the business
1. By issue of share
2. By bank
3. By venture capital
4. By sell of ownership
5. By government incentive
6. By issue of bond
So these are the few example to raise the money for the business
But our topic is related to stock exchange so we considered the
Issue of share and bond
Meaning of bond : Bond is like an debenture by which company
raise money from bank and investors
Bond is like a certificate by which company take loan to bank and
investors at a fixed % of int the bond is treated as a liability of a
company
Types of bond
Redeemable bond and inredeemable bond
 Redeemable bonds are those bond which can be redeemed after
some time
And inredeemable bond cant be redeemable it can be converted
into shares and others type of financial instrument

Meaning of stock market

Stock market is a market where we can bye and sell the share of a
company
It is regulated by the SEBI(security exchange board of india )
It is an authorised body which monitor all the activity and provide
safe place for the buyers and sellers