Stock market is a place where various companies list their stock and shares in the market for open purchase and sell of stock and shares. Stock Market is quite a diversified term and plays a vital role in the overall GDP of a country. All the big shot companies of India are listed here in the stock market.
What is Stock Market:-
It is a market of stock and shares. In simple language we can say that it is a market for buying and selling of stocks such as equity shares, derivatives and bonds of various companies and it also regulates its selling. Therefore, we can say it is a place for buying and selling of stock that is referred to as the Stock Market.
Regulation of Stock Market In India:-
In India the stock market is being regulated by SEBI Board who regulates all the rules and regulations of the Stock Market and Stock Exchange in India.
SEBI is a statutory body that was established in the year 1992.
There are five major functions of Securities Exchange Board of India:-
- All the stocks and brokers working in the marketplace of stocks and securities need to be registered with SEBI. Here all the brokers, sub-brokers, merchant banks, transfer banks and so on.
- It regulates all the notifications and provisions laid down for the securities and stock market and it has been laid down under the provisions of rules and regulations made by SEBI.
- It prohibits all unfair trade practices.
- It regulates all the levying of fees.
- It regulates all the schemes related to Investment.
- It regulates all the functioning and process of mutual funds.
- It imposed all the restrictions on private placement.
- It helps in conducting and inquiring about regular inquiries and audits.
Therefore, SEBI is the board which regulates all the functions and power of the securities market and Indian capital market.
Now, Before moving ahead I would like to request all my readers to write a blog to us just like we did on the topic Write for us Stock Market Sharing your views and opinion about Stock Market with us.
Types of Stocks in Stock Market:-
There are namely four types of stocks available in stock market which are as follows;-
- Common Stock: It is a stock that provides representation and ownership in a corporation. When a company goes through the liquidation process the shareholders of such stocks are those who receive the money at first.
- Preferred stock: It is a certain stock that is a class of stock wherein certain rights have been granted and they also differ from common stock.
- Large cap stocks: It is a stock which is also known as big-cap stocks. These are the shares or stocks who have huge market capitalization of stocks which is around $10 million and more.
- Mid-cap stocks: It is a stock which comes with middle range of market capitalization and herein the worth of market capitalization stays somewhere in range around 5000 cross but lesser than 20,000 crore.
