Stock market
STOCK MARKET What is a stock market? • A stock market or equity market is a market for the trading of company stock (shares) and derivatives at an agreed price. What is a share/stock/equity? • Shares represent a fraction of ownership in a business. The common feature of all these is equity participation. Different classes of shares have different voting rights. • Ownership of shares is documented by a legal document that specifies the amount of shares owned by the shareholder, and other specifics of the shares, such as the par value or the class of the shares (if any). • These days these stock certificates have been dematerialized. (No physical document!) Trading • The shares of a company are in general be transferrable from one shareholder to another . This leads to buying and selling of shares termed as trading. • Investors usually buy and sell shares on the exchanges through a stock brokers registered wit