what is share market

 

The share market, also known as the stock market or equity market, is a public market where stocks (also known as shares) of publicly traded companies are bought and sold. These stocks represent ownership in a company and can be bought and sold by investors.

The share market is an important component of the global financial system and serves as a way for companies to raise capital by selling shares to investors. Investors can then buy and sell these shares based on the perceived value of the company, its financial performance, and other factors.

The share market is usually divided into two main categories: primary and secondary markets. The primary market is where companies issue new stocks to raise capital, while the secondary market is where investors buy and sell existing stocks. The most well-known stock exchanges in the world include the New York Stock Exchange (NYSE), NASDAQ, Tokyo Stock Exchange (TSE), and London Stock Exchange (LSE).National stock exchange. (NSE) bombai stock exchang                                    

stock capital -                    

Stock capital, also known as equity capital, is the portion of a company's capital that is raised by issuing shares of stock to investors. When a company issues shares of stock, it is essentially selling ownership in the company to investors. The investors who purchase the shares become shareholders in the company, and their ownership is proportional to the number of shares they hold.

Stock capital is an important source of funding for companies, particularly when they are first starting out or when they need to raise additional capital for expansion or other projects. Companies can issue two types of stock:-

1. common stock - is the most common type of stock and represents ownership in the company. Common stockholders have the right to vote on company matters, such as the election of the board of directors and major corporate decisions.

2.Preferred stock,- on the other hand, does not usually carry voting rights, but it does have priority over common stock in terms of dividend payments and asset distribution in the event of a liquidation.

Investors who purchase stock in a company are taking on a degree of risk, as the value of the stock can fluctuate based on a variety of factors, including the performance of the company, market conditions, and other economic factors. However, investing in stocks can also offer the potential for significant returns if the company performs well and the stock price increases.in stock and preferred stock.