Frequently Asked Questions (FAQ) about Share Market or Stock Market

Q. What is the stock market?

A. The stock market is a financial market where publicly traded companies' stocks are bought and sold.

Q. How does the stock market work?

A. When a company wants to raise money, it can do so by selling stocks in the company through an initial public offering (IPO). Investors can then buy shares of the company's stock on a stock exchange, such as the New York Stock Exchange or the NASDAQ. The price of a stock is determined by supply and demand for the stock in the market.

Q. What is a stock?

A. A stock is a type of security that represents an ownership share in a publicly traded company. Stocks are bought and sold on a stock exchange, and the price of a stock is determined by supply and demand in the market.

Q. What is a bond?

A. A bond is a type of debt security that represents a loan made by an investor to a borrower, typically a corporation or government. The borrower agrees to pay back the loan, with interest, at a later date.

Q. What is a mutual fund?

A. A mutual fund is a type of investment vehicle that pools money from many investors and uses that money to buy a diversified portfolio of stocks, bonds, or other securities. Mutual funds are managed by professional fund managers, and they offer investors the benefits of diversification and professional management.

Q. What is a dividend?

A. A dividend is a payment made by a corporation to its shareholders, typically in the form of cash or additional shares of stock. Dividends are typically paid out of a company's profits.

Q. What is a bear market?

A. A bear market is a market characterized by falling prices and a negative outlook for the future. It is the opposite of a bull market, which is characterized by rising prices and a positive outlook.

Q. What is a bull market?

A. A bull market is a market characterized by rising prices and a positive outlook for the future. It is the opposite of a bear market, which is characterized by falling prices and a negative outlook.

Q. What is a market index?

A. A market index is a statistical measure of the state of a financial market. It is calculated by taking the average of the prices of a group of stocks or bonds. The most well-known market index is the S&P 500, which is a measure of the performance of 500 large publicly traded companies in the United States.

Q. What is a broker?

A. A broker is a financial professional who buys and sells securities on behalf of investors. Brokers may work for a brokerage firm or may be self-employed.

Q. What is Sensex?

A. The S&P BSE Sensex, also known as the S&P Bombay Stock Exchange Sensitive Index, is a market index representing the performance of the 30 largest and most liquid companies listed on the Bombay Stock Exchange (BSE) in India. The index is calculated based on the free-float market capitalization-weighted methodology, where the level of the index reflects the total market value of all the companies in the index relative to a particular base period. The Sensex is considered to be a barometer of the Indian stock market and is often used to measure the performance of the market as a whole.

Q. What is NIFTY?

A. The Nifty 50, also known as the Nifty, is a market index representing the performance of the 50 most liquid and large capitalized companies listed on the National Stock Exchange (NSE) of India. The index is calculated based on the free-float market capitalization-weighted methodology, where the level of the index reflects the total market value of all the companies in the index relative to a particular base period. The Nifty is considered to be a benchmark index for the Indian stock market and is often used to measure the performance of the market as a whole.