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What is Stock Market Index? Types of Stock market indices

What is Stock Market Index?

Stock Market Index

A Stock market index is mainly an indicator which indicates the performance of the stocks whether most of them have gone up or most of them have gone down. In other words, we can say that Stock market index not only gives a consolidated view about stock market performance but also indicates the overall general economy of the country. If the stock market indices are going up, it indicates that the investors have positive sentiment in the growth story of the economy. For example, the Sensex is an indicator of all the major companies of BSE (Bombay Stock Exchange), where as NIFTY is an indicator of all major companies of NSE (National Stock Exchange). Continue reading

What is an IPO (Initial Public Offering)? Who decides the Price Band of an IPO?

What is an IPO (Initial Public Offering)?

ipo

Initial Public Offering (IPO) is the process by which a company raises funds through sale of its stock to the investors for the first time. Generally with the help of an IPO, a private company goes to the general public and gets listed on stock market exchange. In other words, it can be said that in the name of an IPO, a company raises equity capital by issuing new shares to the public and these shares are further traded in an open market. Continue reading